Taxes Consolidation Act 1997 section 380H

Rented residential accommodation: deduction for certain expenditure on refurbishment

Section 380H gave a landlord a deduction against rental income for expenditure incurred on refurbishing certain rented residential accommodation, with the relief spread over a number of years and subject to detailed conditions on letting, premiums and ownership.

• The section provided a rental deduction for refurbishment expenditure on a "specified building" containing one or more houses both before and after the works.
• The deduction was given at 15% of the qualifying expenditure per year, capped at 100% in total, against rents from the refurbished house.
• The house had to be let throughout a 10-year relevant period under a qualifying lease, with any premium limited to 10% of market value on completion.
• A clawback applied if the house ceased to qualify or changed hands within the relevant period, and the whole of Part 11B was repealed by section 24 Finance Act 2002 and re-enacted in Chapter 11 of Part 10.