asked the Minister for Finance whether it is the practice of the Revenue Commissioners to assess grants given under the Housing Acts to persons building houses as income; and, if so, whether, in view of the fact that money which must be expended on the construction of houses is of the nature of capital expenditure, he will consider the desirability of making an alteration in this practice.
CEISTEANNA—QUESTIONS. ORAL ANSWERS. - INCOME TAX ON HOUSING GRANTS.
It is not the practice to assess as income grants given under the Housing Acts to persons building houses. In the case however, of builders, or other persons building houses for sale, any such grant or subsidy must be taken into account in the computation of the profits assessable to income tax either by inclusion in the trading receipts, or by deduction from the costs. In these cases the money expended on the construction of houses is not in the nature of capital expenditure, but is analogous to cost of manufacture in the case of a manufacturer, or to costs of purchases in the case of a merchant.