A major tax difference between commercial and residential buildings is that you can claim depreciation on commercial buildings. Depreciation for buildings was removed across the board in 2010, then reinstated – but only for commercial buildings – as part of a 2020 emergency pandemic support package. Residential landlords cannot claim depreciation, but there are some grey areas where it’s not immediately obvious whether a building is residential or not. Inland Revenue has recently released a fact sheet to help you find the right depreciation rate for your building. Does your property qualify as non-residential? Here are the criteria according to…
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