Taxes Consolidation Act 1997 section 325

Rented residential accommodation: deduction for certain expenditure on construction

Section 325 provided a "section 23-type" rental deduction in respect of expenditure incurred on the construction of certain rented residential accommodation located in the Custom House Docks Area.

• The section allowed a lessor to deduct construction expenditure on a qualifying premises against rental income from that premises in computing the surplus or deficiency under section 97(1).
• A qualifying premises had to be a house in the Custom House Docks Area, used solely as a dwelling, within specified floor area limits, and first let in its entirety under a qualifying lease.
• A qualifying lease was a lease the consideration for which consisted solely of rent, or of rent together with a premium not exceeding 10 per cent of the relevant cost of the house.
• Clawback provisions applied throughout a 10-year relevant period where the house ceased to be a qualifying premises, with a successor regime where the lessor's interest passed to another person.