Taxes Consolidation Act 1997 section 345

Double rent allowance in respect of rent paid for certain business premises

Section 345 provides a double rent deduction for businesses leasing qualifying premises in designated urban renewal or enterprise areas, and for certain multi-storey car parks.

• A tenant occupying a qualifying premises under a qualifying lease gets a second rent deduction equal to the ordinary trading deduction, doubling the tax relief on the rent.
• The relief is capped at 10 years per premises, with rental periods under earlier qualifying leases on the same premises counted against that cap.
• The lease must be on commercial terms, granted within the qualifying period (or up to one year after), with the lessee not connected to the lessor.
• Hotels qualify only if capital allowances are disclaimed by election; finance leases never qualify, and post-21 April 1997 leases between connected persons are excluded.