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A taxpayer has enquired about the tax treatment of amounts received due to the refund of floor clauses and interest. The DGT has ruled that these amounts are not included in the taxable base; however, if tax deductions for the main residence were claimed using those funds, the tax liability must be regularised.
Taxpayers receiving refunds for floor clauses will not pay Income Tax on the principal amount, but they must ensure that any previous tax relief claimed for home investments is adjusted accordingly.
The tax team reviews your specific situation.
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