Taxes Consolidation Act 1997 section 372AAD

Residential accommodation: capital allowances to lessors in respect of eligible expenditure incurred on the conversion and refurbishment of relevant houses

Section 372AAD provides accelerated capital allowances for landlords who incur capital expenditure on the conversion or refurbishment of residential properties situated in special regeneration areas.

• Eligible expenditure is capital spending on the conversion or refurbishment of a special qualifying premises — a certified residential letting within a special regeneration area — during the relevant qualifying period ending 31 December 2030, reduced by any grants or payments received from the State or a public or local authority.
• The industrial buildings allowance provisions are applied to eligible expenditure: for spending incurred before 1 January 2026 the write-off rate is 15% per annum with a 7-year tax life; for spending incurred on or after 1 January 2026 the rate rises to 50% per annum with a 10-year tax life.
• Claims must be made electronically to Revenue and must be accompanied by specified information including the claimant's tax reference number, the address and LPT unique identification number of the premises, and details of aggregate eligible expenditure; minimum qualifying expenditure is €5,000.
• The relief is subject to EU de minimis state aid rules, which cap total aid to a single undertaking at €300,000 over any rolling three-year period from all sources; expenditure relieved under this section cannot also be claimed under any other provision of the Tax Acts.

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