Taxes Consolidation Act 1997 section 101

Relief for amount not received

Section 101 provides relief from tax where a property owner has not received rent that was due, either because the amount is irrecoverable or because the owner voluntarily waived it to avoid hardship.

• A landlord is taxed on rental income whether or not the rent has actually been received, but relief is available where the rent proves to be irrecoverable due to the tenant's default.
• Relief is also available where the landlord has waived the rent without receiving anything in return, provided the waiver was reasonably made to avoid hardship to the tenant.
• Where relief is granted, the landlord is treated as never having been entitled to the rent, and tax assessments for all relevant years are adjusted accordingly — including by way of repayment, even if the normal time limit for repayment claims under section 865(4) has passed.
• If all or part of the rent is subsequently received, the landlord's tax liability for the relevant years must be readjusted by amended assessment or otherwise.