Revenue expenditure is allowable as a business expense provided it is incurred ‘wholly and exclusively for the purposes of the trade, etc.’ (see ¶5810) and is not specifically disallowed in the Taxes Acts (see ¶5820). Usually, there is no problem in distinguishing between expenditure on revenue account and expenditure on capital account. Thus, the cost of purchasing (whether by a single payment or by way of instalments of the lump sum cost) business premises is capital expenditure, while rent paid for business premises is revenue expenditure, and the cost of alterations, additions, improvements or renovations is capital, while the cost of repairs is revenue.

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