News & Events
Pre-letting expenditure for vacant residential premises
Section 97A Finance Act 2017 introduces authorisation to use expenses that are incurred on a vacant residential premises, in the 12 months before it being first let after a period of non-occupancy, as a deduction against rental income from that premises.
The premises must have been vacant for at least 12 months and then let as a residential premises between 25th December 2017 and 31st December 2021.
The authorised deduction is subject to a cap €5,000 per vacant premises and to claw-back in certain circumstances.
If the person who incurs the expenditure stops letting the property as a residential premises within 4 years of the first letting, the deduction will be clawed-back in the year in which the property ceases to be let as a residential premises.
This can either be due sale of the property or change of use from rented residential property.
If you feel this is relevant to a property you are currently letting, or feel this could positively impact your future income tax liabilities, please call our Taxation Services team and we would be happy to discuss this further with your interests in mind.