Revenue Precedents

Do payments for certain service charges made in accordance with the terms of a qualifying lease qualify for a double rent deduction? In order to qualify the payments must be in the nature of rent as defined by section 96 TCA 1997. If the payments do not arise from the holding of the premises but from the use to which the premises are put they are less likely to be in the nature of rent. If the payments would arise irrespective of the nature of the occupier’s interest in the premises , they are not in the nature of rent. IT962013

Payment of irrecoverable VAT under section 4 VAT Act 1972 does not qualify for double rent deduction since the payment is not rent. The deduction is not given on account of rent. If given, it is on account of the VAT payable by the lessee. IT982001