Taxes Consolidation Act 1997 section 372G

Rented residential accommodation: deduction for certain expenditure on conversion

Section 372G provides a deduction against rental income for expenditure incurred on converting buildings located in designated qualifying areas into rented residential accommodation.

• Relief applies to conversion of a building (or part of a building) within a qualifying area into one house, or into two or more houses.
• A qualifying premises must be used solely as a dwelling, have a floor area between 38 and 125 square metres, and be supported by a certificate of reasonable cost.
• The deduction is given against rental income from the qualifying premises and is treated as a deduction authorised by section 97(2).
• The relevant period is 10 years from the first letting; if the premises ceases to qualify or ownership changes during this period, clawback rules apply.