Taxes Consolidation Act 1997 section 372AP

Relief for lessors

Section 372AP details the relief available to landlords in respect of eligible expenditure on qualifying rented residential premises and special qualifying premises, including the mechanics of the deduction, clawback provisions, and rules for successor owners.

• Landlords of qualifying or special qualifying premises may deduct eligible expenditure from rental income; for special qualifying premises, the deduction is 15% per year up to a maximum of 100%, and the deduction is available against all Irish rental income
• Relief is clawed back if, within the 10-year relevant period, the property ceases to qualify or the landlord disposes of it, but relief may pass to a successor owner up to the relevant price paid
• Where a builder sells a newly constructed, converted or refurbished property before use, the purchaser is treated as having incurred eligible expenditure equal to the relevant price paid, preserving an appropriate share of the builder's profit as relievable expenditure
• Expenditure qualifying under this section cannot qualify under any other tax provision, grants must be excluded, planning permission must have been obtained where required, and the interaction with Capital Gains Tax is governed by section 555