Taxes Consolidation Act 1997 section 355

Disclaimer of capital allowances on holiday cottages, holiday apartments, etc

Section 355 restricts the dual availability of double rent allowance and capital allowances on holiday cottages, holiday apartments and other self-catering accommodation in qualifying resort areas, and ring-fences the capital allowances where they are claimed.

• Applies to Bord Fáilte registered holiday cottages in qualifying resort areas and to registered or listed holiday apartments and other self-catering accommodation that are qualifying premises under section 353.
• A building of this type can only be a qualifying premises for double rent allowance under section 354 if the person entitled to the capital allowances makes an irrevocable written election to disclaim them.
• Where capital allowances are claimed on apartments or other self-catering accommodation in the resort areas (but not registered cottages, which are ring-fenced by section 405), they may only be set against rental income from the property and cannot create or augment a loss for offset against other income.
• The restrictions do not apply where, before 5 April 1996, a binding contract, planning application, a favourable Revenue opinion under section 408 or qualifying land acquisition with documented planning discussions was in place.