Taxes Consolidation Act 1997 section 222A

Exemption of certain profits or gains arising from cost rental properties

Section 222A provides a corporation tax exemption for rental income from dwellings designated as cost rental under the Affordable Housing Act 2021.

• Rental profits from qualifying cost rental dwellings first designated on or after 8 October 2025 are fully exempt from corporation tax, but related losses, reliefs and capital allowances are also disregarded.
• Qualifying providers must still file corporation tax returns reporting the number of dwellings, total rent received and the profit that would otherwise have been taxable.
• Where the Minister revokes a property's cost rental designation, the exemption ceases from the revocation date and normal corporation tax rules apply going forward.
• Capital allowances that would have accrued during the exempt period are deemed to have been granted, so they cannot be claimed again once normal taxation resumes.