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A taxpayer inquired whether they could claim tax relief for investment in their main residence after acquiring an adjacent property in 2017 to extend their current home. The Directorate General for Taxes (DGT) ruled that this is not possible as the deduction has been abolished and the requirements for the transitional regime are not met.
This ruling clarifies that property extensions involving the purchase of adjacent land or buildings do not qualify for the abolished main residence tax relief if they fall outside the specific transitional provisions.
The tax team reviews your specific situation.
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