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Chapter 4
Income Tax, Corporation Tax and Capital Gains Tax
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Amendment of Chapter 13 of Part 10 of Principal Act (Living City Initiative)
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25. The Principal Act is amended—
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(a) in section 372AAA, in the definition of “qualifying period”, by the substitution of “31 December 2027” for “31 December 2022”,
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(b) in section 372AAB—
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(i) by the substitution of the following subsection for subsection (2):
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“(2) (a) Where an individual, having duly made a claim, proves to have incurred qualifying expenditure on a qualifying premises in a year of assessment before the year of assessment 2023, the individual is entitled, for the year of assessment in which the expenditure was incurred and for any of the 9 subsequent years of assessment in which the qualifying premises is his or her only or main residence, to have a deduction made from his or her total income of an amount equal to 10 per cent of the amount of that expenditure.
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(b) Where an individual, having duly made a claim, proves to have incurred qualifying expenditure on a qualifying premises in the year of assessment 2023 or any subsequent year, the individual is entitled, subject to subsection (11), for the year of assessment in which expenditure was incurred and for any of the 6 subsequent years of assessment in which the qualifying premises is his or her only or main residence, to have a deduction made from his or her total income of an amount equal to—
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(i) 15 per cent of that expenditure incurred for each of the first 6 years of assessment, and
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(ii) 10 per cent of that expenditure for the final year of assessment.”,
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and
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(ii) by the insertion of the following subsection after subsection (10):
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“(11) (a) Where in a year of assessment an individual is entitled to a deduction under subsection (2)(b), in respect of which a deduction has not been wholly given in that year of assessment, the individual may claim that any portion of the deduction which has not been given shall be carried forward and, in so far as may be, deducted from his or her total income in subsequent years of assessment in which the qualifying premises remains as his or her only or main residence.
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(b) Subject to paragraph (c), any deduction under this subsection shall be given as far as possible from the assessment for the first and subsequent year of assessment and, in so far as it cannot be so given, from the assessment for the next year of assessment and so on.
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(c) No deduction shall be allowed under this subsection for a year of assessment commencing 10 or more years after the year of assessment in which a claim was first made under subsection (2)(b).”,
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and
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(c) in section 372AAD(1), in the definition of “relevant qualifying period”, by the substitution of “31 December 2027” for “31 December 2022”.
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