Taxes Consolidation Act 1997 section 97A

Pre-letting expenditure in respect of vacant premises

Section 97A provides tax relief for pre-letting expenses incurred in preparing a vacant residential property for the rental market.

• Expenses incurred during the 12 months before a vacant property is first let as a residential premises may be deducted against rental income, provided the property was unoccupied for at least 6 months beforehand.
• The relief applies to expenditure incurred on or before 31 December 2027, and the maximum deduction is capped at €10,000 per vacant premises.
• If the landlord ceases to let the property as a residential premises within 4 years of the first letting, the relief is clawed back by treating the deduction as taxable rental income in the year the letting ends.
• Expenditure claimed under this section cannot also be claimed as a deduction under any other provision of the Tax Acts.