The following is an extract from Revenue’s tax and duty manual:
“From 1/1/16, a landlord who rents residential premises for a period of three years to tenants who are in receipt of certain social housing supports may, notwithstanding the general percentage interest restriction on such premises, deduct the balance of the interest accrued in each year of the 3 year period as an expense in computing the taxable rents. The rolled up interest balance is treated as accruing on the day after the three year period.”
Can you please advise concerning the following:
1. What are the certain social housing supports
2. Does the letting have to be for three years only, or can it be in excess of three years
3. Is 2019 the first year in which the rolled up interest can be claimed eg if there is three year letting agreement commencing 1/1/14, can the rolled up interest be claimed in 2017?