Taxes Consolidation Act 1997 section 372N

Capital allowances in relation to construction or refurbishment of certain commercial buildings or structures

Section 372N provides capital allowances for capital expenditure incurred on the construction or refurbishment of certain commercial premises located in qualifying rural areas.

• Applies to commercial premises (shops, offices, pubs and similar) in qualifying rural areas used for a trade or profession, or let on commercial terms.
• An initial allowance of 50 per cent is available to both lessors and owner-occupiers, with annual writing-down allowances of 4 per cent on the balance.
• Owner-occupiers may alternatively claim free depreciation of up to 50 per cent of qualifying expenditure.
• Refurbishment expenditure qualifies only where it is at least 10 per cent of the market value of the premises immediately before refurbishment.