Section 23 - must this be closed by end of year?

[dubinamerica]

Hi - just wondering if a section 23 property must be closed on by end of year to obtain full tax breaks? If this is pushed out til January would it impact the tax breaks?

 

[katiealice]

In order to claim the S23 relief, the property would need to be let before the end of the year not just closed.

 

[Lobby]

As long as the property has been completed by Dec 31st then the Section 23 relief is not affected - but if you don't have a tenant in place before end of 2006, then you cannot claim any relief in 2006. Your tax relief would only commence in 2007 in that case.

But the reduction to 75% of tax relief does not affect you in relation to Dec 31st as long as the building is completed (and maybe even if its only substantially completed).

 

[dubinamerica]

Grand thanks - that's what I had a query on (the reduction in the allowance) although I didn't phrase it very well. Thanks for the info.