Taxes Consolidation Act 1997 section 380C

Rented residential accommodation: deduction for certain expenditure on conversion

Section 380C provides a rental income deduction for expenditure incurred on converting a building into a house, or into two or more houses, in a qualifying area, where the converted property is let under a qualifying lease.

• Relief is given as a deduction in computing the rental surplus or deficiency on the let property under section 97.
• The building must be in a qualifying area and the converted house must meet floor area, certificate of reasonable cost, and qualifying lease conditions.
• A 10-year relevant period applies from the first letting, during which the property must remain let under qualifying leases.
• If the property ceases to qualify, or ownership passes, within the relevant period, deductions previously claimed are clawed back as deemed rent.