372AAB Residential accommodation: allowance to owneroccupiers in respect of qualifying expenditure incurred on the conversion and refurbishment of Georgian houses.

(1) In this section—

“conversion” in relation to a building, structure or house, means any work of—

(a) conversion into a house of a building or part of a building where the building or, as the case may be, the part of the building has not, immediately prior to the conversion, been in use as a dwelling, and

(b) conversion into 2 or more houses of a building or part of a building where before the conversion the building or, as the case may be, the part of the building has not, immediately prior to the conversion, been in use as a dwelling or had been in use as a single dwelling,

including the carrying out of any necessary works of construction, reconstruction, repair or renewal, and the provision or improvement of water, sewerage or heating facilities in relation to the building or the part of the building, as the case may be;

“house” includes any building or part of a building used or suitable for use as a dwelling and any out office, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building;

“letter of certification” means a letter from the relevant local authority stating that—

(a) planning permission, in so far as it is required, in respect of the work carried out in the course of the refurbishment or conversion has been granted under the Planning and Development Acts 2000 to 2010,

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(b) the total floor area of the house is not less than 38 square metres and not more than 210 square metres,

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(c) the house to which the letter relates complies with such conditions, if any, as may be determined by the Minister for the Environment, Community and Local Government from time to time for the purposes of section 5 of the Housing (Miscellaneous Provisions) Act 1979, in relation to standards for improvement of houses and the provision of water, sewerage and other services in houses, and

(d) that at the time of issuing of the letter and on the basis of the information available at that time the cost of conversion into, or as the case may be, refurbishment of, the house appears to be reasonable;

“qualifying expenditure” means expenditure incurred by an individual, in the qualifying period, on the conversion into, or, as the case may be, the refurbishment of a qualifying premises, after deducting from that amount of expenditure any sum in respect of or by reference to—

(a) that expenditure,

(b) the qualifying premises, or

(c) the conversion or, as the case may be, the refurbishment work in respect of which that expenditure was incurred;

which the individual has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority;

“qualifying premises” means a ^[2]>Georgian^<[2][2]>relevant^<[2] house—

(a) the site of which is wholly within a special regeneration area,

(b) which is used solely as a dwelling,

(c) in respect of which a letter of certification has issued, and

(d) which is first used, after the qualifying expenditure has been incurred, by the individual as his or her only or main residence;

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“relevant local authority” means the county council, the city council or the borough council or, where appropriate, the town council, within the meaning of the Local Government Act 2001 in whose functional area the special regeneration area is situated;

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“relevant local authority” means the local authority, within the meaning of the Local Government Act 2001 (as amended by the Local Government Reform Act 2014), in whose functional area the special regeneration area is ^[7]>situated;^<[7][7]>situated.^<[7]

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“total floor area” means the total floor area of a house, measured in the manner referred to in section 4(2)(b) of the Housing (Miscellaneous Provisions) Act 1979.

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(2) Where an individual, having duly made a claim, proves to have incurred qualifying expenditure on a qualifying premises in a year of assessment, the individual is entitled, for the year of assessment and for any of the 9 subsequent years of assessment in which the qualifying premises is his or her only or main residence, to have a deduction made from his or her total income of an amount equal to 10 per cent of the amount of that expenditure.

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(2) (a) Where an individual, having duly made a claim, proves to have incurred qualifying expenditure on a qualifying premises in a year of assessment before the year of assessment 2023, the individual is entitled, for the year of assessment in which the expenditure was incurred and for any of the 9 subsequent years of assessment in which the qualifying premises is his or her only or main residence, to have a deduction made from his or her total income of an amount equal to 10 per cent of the amount of that expenditure.

(b) Where an individual, having duly made a claim, proves to have incurred qualifying expenditure on a qualifying premises in the year of assessment 2023 or any subsequent year, the individual is entitled, subject to subsection (11), for the year of assessment in which expenditure was incurred and for any of the 6 subsequent years of assessment in which the qualifying premises is his or her only or main residence, to have a deduction made from his or her total income of an amount equal to—

(i) 15 per cent of that expenditure incurred for each of the first 6 years of assessment, and

(ii) 10 per cent of that expenditure for the final year of assessment.

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(2A) Relief under this section shall not be given unless the following information is provided to the Revenue Commissioners as part of the claim, referred to in subsection (2), made by the individual:

(a) the name and PPS number of the individual making the claim;

(b) the address of the qualifying premises in respect of which the qualifying expenditure was incurred;

(c) the unique identification number (if any) assigned to the qualifying premises under section 27 of the Finance (Local Property Tax) Act 2012; and

(d) details of the aggregate of all qualifying expenditure incurred by the individual in respect of the qualifying premises.

(2B) Any claim made, or information required to be provided, to the Revenue Commissioners under this section, shall be made or provided by electronic means and through such electronic systems as the Revenue Commissioners may make available for the time being for any such purpose.

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(3) Where the individual or—

(a) the individual’s spouse, is assessed to tax in accordance with section 1017, or

(b) the individual’s civil partner is assessed to tax in accordance with section 1031C,

then, except where section 1023 or 1031H, as the case may be, applies, the individual shall be entitled to have the deduction, to which he or she is entitled under subsection (2), made from his or her total income and the total income of his or her spouse or civil partner, as the case may be, if any.

(4) For the purposes of determining whether and to what extent qualifying expenditure incurred on or in relation to a qualifying premises is incurred or not incurred during the qualifying period, only such an amount of that expenditure as is properly attributable to work on the conversion into or refurbishment of the qualifying premises actually carried out during the qualifying period shall be treated as having been incurred in that period.

(5) Where qualifying expenditure, in relation to a qualifying premises, is incurred by 2 or more persons, each of those persons shall be treated as having incurred the expenditure in the proportions in which they actually bore the expenditure, and the expenditure shall be apportioned accordingly.

(6) Subsections (6), (9) and (10) of section 372AP shall, with any necessary modifications, apply in relation to—

(a) the apportionment of eligible expenditure (within the meaning of section 372AN) incurred on or in relation to a qualifying premises and of the relevant cost (within the meaning of section 372AP) in relation to that premises, and

(b) the amount of eligible expenditure (within the meaning aforesaid) to be treated as incurred in the qualifying period,

for the purposes of this section, in determining—

(i) the amount of qualifying expenditure incurred on or in relation to a qualifying premises, and

(ii) the amount of qualifying expenditure to be treated as incurred in the qualifying period,

as they apply for the purposes of section 372AP.

(7) Expenditure in respect of which an individual is entitled to relief under this section shall not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts.

(8) For the purposes of this section, expenditure incurred on the conversion into, or, as the case may be, refurbishment of a qualifying premises shall be deemed to ave been incurred on the earliest date after the expenditure was actually incurred on which the premises is in use as a dwelling.

(9) This section shall not apply where qualifying expenditure incurred does not exceed ^[9]>10 per cent of the market value of the building, structure or house immediately before that expenditure was incurred.^<[9][9]>€5,000.^<[9]

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(10) An appeal to the Appeal Commissioners shall lie on any question arising under this section in like manner as an appeal would lie against an assessment to income tax and the provisions of the Tax Acts relating to appeals shall apply accordingly.

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(11) (a) Where in a year of assessment an individual is entitled to a deduction under subsection (2)(b), in respect of which a deduction has not been wholly given in that year of assessment, the individual may claim that any portion of the deduction which has not been given shall be carried forward and, in so far as may be, deducted from his or her total income in subsequent years of assessment in which the qualifying premises remains as his or her only or main residence.

(b) Subject to paragraph (c), any deduction under this subsection shall be given as far as possible from the assessment for the first and subsequent year of assessment and, in so far as it cannot be so given, from the assessment for the next year of assessment and so on.

(c) No deduction shall be allowed under this subsection for a year of assessment commencing 10 or more years after the year of assessment in which a claim was first made under subsection (2)(b).

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