Taxes Consolidation Act 1997 section 372AD

Capital allowances in relation to construction or refurbishment of certain commercial premises

Section 372AD provides capital allowances for capital expenditure incurred on the construction or refurbishment of certain commercial premises located within qualifying urban renewal areas.

• Relief applies to commercial premises in a qualifying area used for a trade or profession or let on commercial terms.
• Industrial buildings, hotels and any part of a premises used as a dwelling are excluded from relief.
• A 50 per cent initial allowance is available to both lessors and owner-occupiers, with the balance written off at 4 per cent per annum; alternatively, owner-occupiers may claim free depreciation of up to 50 per cent.
• No balancing charge arises where the relevant event occurs more than 13 years after the premises was first used or, in a refurbishment case, more than 13 years after the refurbishment expenditure was incurred.