Taxes Consolidation Act 1997 section 346

Rented residential accommodation: deduction for certain expenditure on construction

Section 346 grants landlords a deduction against rental income for construction expenditure on rented residential accommodation located in designated urban renewal areas — the relief commonly known as "section 23" relief.

• A deduction equal to qualifying construction expenditure is set against Case V rental income from the property.
• The house must sit in a designated area, fall within the floor-area limits, and be let under a qualifying lease throughout a 10-year relevant period.
• A clawback applies if the house stops being a qualifying premises, or ownership of the lessor's interest changes hands, during the 10-year period.
• Sections 346–350 were repealed by section 24(3) Finance Act 2002, with title to existing relief preserved by the saving provision in section 372AV.