There are clarifications to the thermal modernisation relief
Expenditure on the purchase and installation of an air conditioner with a heating function does not entitle a taxpayer to benefit from the thermal modernisation relief, according to the latest clarifications from the Minister of Finance.
The document concerns the thermo-modernisation relief, was published on 31 March and runs to 18 pages.
As a reminder, the thermomodernisation relief will benefit PIT taxpayers (on the tax scale, PIT flat rate or lump sum). The allowance allows for a deduction from the tax assessment basis (in the case of taxpayers on the scale or flat-rate taxpayers) or from income (in the case of flat-rate taxpayers) of the expenses incurred for the realisation of the thermomodernisation project. Of course, in order to benefit from the deduction, other conditions provided for in the act must be met, such as the type of expenditure incurred, the type of building, the legal title to the building or documentation of the costs incurred.
– It is important to remember that not every expense can be deducted under this relief. Only expenditure on the thermal modernisation of single-family buildings is deductible, and it is necessary to have the legal title to the building. To make the deduction, an invoice issued by an active VAT taxpayer is required. The thermomodernisation investment should be completed within three years. Moreover, the deduction is limited and the limit for spouses is separate – each has their own. It is also worth mentioning that if the investment is financed with a loan, the relief can also be recognised. However, if the taxpayer who used the relief receives a refund of the deducted expenses, it will be necessary to adjust the tax preference, explains Adam Allen, tax advisor, partner at Thedy & Partners.