Taxes Consolidation Act 1997 section 363

Rented residential accommodation: deduction for certain expenditure on refurbishment

Section 363 gives a deduction against rental income for expenditure incurred on refurbishing certain rented residential accommodation on designated offshore islands.

• Relief is available for "relevant expenditure" on refurbishing a "specified building" sited on one of 23 designated islands off the Cork, Donegal, Galway, Limerick, Mayo and Sligo coasts.
• The refurbished house must be a "qualifying premises" — used solely as a dwelling, within the prescribed floor area limits, holding a certificate of reasonable cost, and let in its entirety under a qualifying lease.
• A qualifying lease must run for at least 12 months, with the consideration consisting of rent only or rent plus a premium not exceeding 10% of the post-refurbishment market value of the house.
• A 10-year clawback period applies: if the house ceases to qualify or the lessor's interest is transferred, the previously deducted amount is treated as rent received on the day before the triggering event.