Taxes Consolidation Act 1997 section 356

Rented residential accommodation: deduction for certain expenditure on construction

Section 356 allows landlords of newly constructed rental property in designated seaside resort areas to deduct the construction expenditure against rental income from the property, subject to size limits and a 10-year holding period.

• Relief applies to a house in a qualifying resort area first let under a qualifying lease.
• Size limits: 30–125 sqm for self-contained flats or maisonettes in buildings of two or more storeys; 35–125 sqm in any other case.
• Construction expenditure is deductible against rental income as if it were a Case V deduction under section 97(2).
• Clawback applies if the property ceases to qualify, or the lessor's interest is sold, within the 10-year relevant period.