What can I claim if I make improvements to my property?

Historically expenses incurred by a landlord in a period that a property is vacant were not allowable tax deductions. However, Revenue introduced and then enhanced a measure (from 1 January 2023) which allows pre-letting expenditure to be claimed (up to a maximum value of €10,000) where a residential property has been vacant for at least 6 months. 

Prior to 1 January 2023 the maximum amount of pre-letting expenses which could be claimed was capped at €5,000.

These expenses must be of a sort which are allowable for tax purposes. 

And please note this tax deduction will be clawed back if the property ceases to be rented within 4 years of the letting to which the pre-letting expenses relate. 

Tax Review Thursday

On 18 May 2023 we are holding our first Tax Review Thursday in partnership with Make-A-Wish Ireland. In return for a €95 donation to Make-A-Wish Ireland you can sit down with an accountant to go through your tax return together. You may find that you have reliefs and allowances, like pre-letting expenses, that you haven’t been claiming. Find out more about Tax Review Thursday here

 

 

Date published 11 May 2023 | Last updated 11 May 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.