Taxes Consolidation Act 1997 section 326

Rented residential accommodation: deduction for certain expenditure on conversion

Section 326 provided a deduction against rental income for expenditure incurred on converting buildings in the Custom House Docks Area into residential accommodation let under qualifying leases. The provision was repealed by section 24(3)(a) Finance Act 2002, with a saving provision for existing beneficiaries contained in section 372AV. The section operated as follows:

• It allowed a person who incurred conversion expenditure on a qualifying premises in the Custom House Docks Area to deduct that expenditure in computing the surplus or deficiency on the rent from the premises.
• The qualifying period commenced on 30 January 1991 and ended on the last day of the specified period, and planning permission for the conversion was a precondition for the relief.
• The property had to be a qualifying premises throughout a 10-year relevant period beginning with the first letting under a qualifying lease, with strict size, cost and letting conditions attached.
• If the premises ceased to qualify during the relevant period, or if ownership of the lessor's interest passed to another person, the deduction previously given was clawed back as deemed rent.