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A taxpayer queried which value should be declared in the deed for the subdivision of part of a rural estate containing buildings. The DGT ruled that the taxable base is the value of the subdivided estate and that, under the principle of accession, the value of the land includes both the ground and the airspace.
This ruling clarifies that for tax purposes during land subdivision, the valuation of the land must account for the vertical space (airspace) above it, particularly when buildings are involved.
The tax team reviews your specific situation.
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