Taxes Consolidation Act 1997 section 372R

Rented residential accommodation: deduction for certain expenditure on refurbishment

Section 372R provides a deduction against rental income for landlords who incur expenditure on the refurbishment of rented residential accommodation located in qualifying rural areas.

• Relief is given as a Case V deduction for relevant expenditure on refurbishing a specified building in a qualifying rural area.
• The house must be let throughout a 10-year relevant period under a qualifying lease of at least 3 months.
• The dwelling must have a floor area between 38 and 175 square metres and a certificate of reasonable cost.
• A clawback applies if the house ceases to be a qualifying premises or the lessor's interest passes during the relevant period.