Taxes Consolidation Act 1997 section 372AF

Rented residential accommodation: deduction for certain expenditure on conversion

Section 372AF provided a deduction against rental income for expenditure incurred on converting existing buildings into rented residential accommodation within designated urban renewal qualifying areas.

• Available for the conversion of a non-residential building, or a single dwelling, into one or more houses located wholly within a qualifying area.
• Each converted house must measure between 38 and 150 square metres, be used solely as a dwelling, and be let under a qualifying lease throughout a 10-year relevant period.
• The deduction is given against rental income from the qualifying premises when computing the Case V rental surplus or deficiency.
• A clawback applies if the property ceases to be a qualifying premises, or if ownership of the lessor's interest passes, during the 10-year relevant period.