Taxes Consolidation Act 1997 section 372AE

Rented residential accommodation: deduction for certain expenditure on construction

Section 372AE provided a deduction against rental income for expenditure incurred on constructing qualifying rented residential accommodation in designated areas, but was repealed by Finance Act 2002 and consolidated into Chapter 11 of Part 10.

• Lessors could deduct construction expenditure on a qualifying premises against rent from that premises when computing the Case V surplus or deficiency.
• A qualifying premises had to be in a designated area, used solely as a dwelling, between 38 and 125 square metres, certified, and first let under a qualifying lease.
• Clawback provisions applied if, during the 10-year relevant period, the premises ceased to qualify or the lessor's interest was transferred.
• The section was repealed by section 24(3) Finance Act 2002 and its provisions, together with similar reliefs, are now consolidated in Chapter 11 of Part 10.