Senior consultant, Phil O’Connor, has been featured in Insider Ireland, explaining what tax relief you can claim on a leased residential property in the Republic of Ireland and how to go about it.
Phil discusses how, in a bid to ease the housing crisis, there have been calls for tax incentives which would encourage more landlords to enter the market by increasing their returns. However, what many people are unaware of is that valuable capital allowances are already available to them in the form of Wear and Tear Allowances, which can be claimed for the cost of acquiring and developing leased residential property.
He explains: “Claims for plant and machinery fixtures are much more beneficial, however they are not often claimed due to the difficulty in establishing legal entitlement to claim and the complicated nature of the analysis required, which necessitates tax, legal, construction and property knowledge. This is a skill set that falls outside the general experience of most accountants and tax advisers.”