Taxes Consolidation Act 1997 section 372AAE

Capital allowances in relation to conversion or refurbishment of certain qualifying premises

Section 372AAE introduces an accelerated capital allowances scheme to encourage the conversion or refurbishment of vacant commercial properties into residential rental accommodation within special regeneration areas.

• Qualifying expenditure must be incurred between 1 January 2026 and 31 December 2030 on converting or refurbishing a rateable commercial building, located wholly within a special regeneration area, into one or more dwellings let at arm's length commercial rents, supported by a local authority letter of certification.
• An accelerated writing-down allowance of 50% per annum applies, replacing the standard 4% rate, meaning the full allowance on qualifying expenditure can be claimed over just two years; the tax life for balancing purposes is 10 years from first use after the works.
• Qualifying expenditure must exceed €5,000; any grants or payments received from the State, a statutory board, or a public or local authority must be deducted before calculating the allowance; expenditure is only treated as incurred in the qualifying period to the extent it relates to work actually carried out in that period.
• Claims must be filed electronically with Revenue; relief cannot be combined with any other capital allowances provision for the same expenditure; and the relief is subject to EU de minimis state aid rules, with total aid capped at €300,000 to a single undertaking over any three-year period.