Taxes Consolidation Act 1997 section 372I

Residential accommodation: allowance to owner-occupiers in respect of expenditure on construction or refurbishment

Section 372I gives owner-occupiers an income tax deduction for qualifying expenditure on the construction or refurbishment of a residential property situated in a designated urban renewal area.

• Relief is given to the individual who occupies the property as their only or main residence after the work is carried out.
• The deduction is spread over ten years: the year the expenditure is incurred and the nine following years.
• Construction expenditure attracts 5% per year (or 10% per year where the premises fronts on to a qualifying street); refurbishment expenditure attracts 10% per year.
• The house must be used solely as a dwelling and have a total floor area of between 38 and 125 square metres.