Taxes Consolidation Act 1997 section 380D

Rented residential accommodation: deduction for certain expenditure on refurbishment

Section 380D Rented residential accommodation: deduction for certain expenditure on refurbishment

Section 380D allows a landlord who refurbishes a qualifying residential building in a designated area to deduct the refurbishment expenditure against rental income from the property, subject to detailed conditions and a 10-year clawback period.

• The relief applies to a landlord who incurs refurbishment expenditure on a multi-unit residential building situated wholly within a qualifying area.
• The property must be let under a qualifying lease throughout a 10-year relevant period, with only short reasonable gaps permitted between tenancies.
• A clawback applies if the property ceases to qualify or the lessor's interest is transferred during the relevant period, treating the prior deduction as rent received.
• Planning permission is required where applicable, and no double relief is available where the expenditure attracts another tax allowance.