Taxes Consolidation Act 1997 section 348

Rented residential accommodation: deduction for certain expenditure on refurbishment

Section 348 sets out the deduction available against rental income for relevant expenditure incurred on the refurbishment of certain rented residential accommodation in designated urban renewal areas.

• Relief is given by deducting qualifying refurbishment expenditure when computing the rental surplus or deficiency under Case V.
• The property must be a "qualifying premises" within size limits (30–125 sqm for flats; 35–125 sqm otherwise) and let under a "qualifying lease".
• The building must contain two or more houses both before and after the refurbishment, and the site must be within a designated area or front onto a designated street.
• A 10-year relevant period applies, during which a clawback arises if the premises ceases to qualify; the relief was repealed by FA 2002 but preserved for existing beneficiaries by section 372AV.