Taxes Consolidation Act 1997 section 380B

Rented residential accommodation: deduction for certain expenditure on construction

Section 380B set out the deduction available against rental income for expenditure incurred on the construction of rented residential accommodation under the student accommodation scheme. The qualifying period for the scheme ran from 1 April 1999 to 31 March 2003. Part 11A was repealed by section 24 of the Finance Act 2002 and its provisions consolidated into Chapter 11 of Part 10.

• Defined qualifying lease, qualifying premises, relevant cost and a 10-year relevant period.
• Allowed the construction expenditure to be deducted in computing the Case V rental surplus or deficiency.
• Reduced the qualifying expenditure where a premium or other lump sum was payable under the lease.
• Triggered a clawback if the property ceased to qualify, or ownership passed, within the relevant period.