Taxes Consolidation Act 1997 section 347

Rented residential accommodation: deduction for certain expenditure on conversion

Section 347 provides for a deduction against rental income for expenditure incurred on converting certain buildings in designated urban renewal areas into rented residential accommodation.

• The building must be in a designated area (or front a designated street) and either have never been used as a dwelling or, where converted into two or more houses, not have been used as more than a single dwelling.
• Each resulting house must meet floor area limits — 30 to 125 sq m for a self-contained flat or maisonette, or 35 to 125 sq m otherwise — hold a certificate of reasonable cost, and be first let under a qualifying lease.
• The deduction is given against rental income from the house and applies during the relevant period of 10 years beginning with the first letting under a qualifying lease.
• Relief is clawed back as deemed rent if the house ceases to be a qualifying premises during the 10-year period, and special rules govern apportionment, premiums, sales before first use, and changes in ownership.