Taxes Consolidation Act 1997 section 335

Rented residential accommodation: deduction for certain expenditure on conversion

Section 335 provided a deduction against rental income for expenditure incurred on converting buildings in the Temple Bar Area into rented residential accommodation.

Key features of the relief included:

• The conversion had to relate to a building in the Temple Bar Area that had not previously been used as a dwelling, or had been used only as a single dwelling before being converted into two or more houses.
• The converted premises had to be let under a qualifying lease and used solely as a dwelling, satisfying floor area limits and supported by a certificate of reasonable cost.
• Qualifying conversion expenditure was deductible in computing the rental surplus or deficiency under section 97(1), as if it were an authorised deduction under section 97(2).
• A 10-year relevant period applied, with a clawback if the premises ceased to qualify or the lessor's interest was transferred during that period.