GST/HST - Improvement to capital personal property

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Improvements to capital personal property

An improvement to capital personal property means any property or service supplied or goods imported to improve the capital personal property, to the extent that the price paid for those supplies is included in determining the adjusted cost base of the capital personal property.

If you have paid GST/HST for the acquisition or importation, you can claim an ITC if you are using the capital personal property primarily (more than 50%) in your commercial activity.

If the improvement is to a passenger vehicle or aircraft, you can add the cost of improvement to the adjusted cost base of the passenger vehicle or aircraft.

You cannot include any amount for improvement to a passenger vehicle that will make the adjusted cost base exceed the capital cost limitation.

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Date modified:
2013-04-12