What do I need to know about pre-letting expenses?

In general expenses that you incur prior to letting a property for the first time are not allowable against the profits you make from renting the property apart from advertising costs and estate agent fees.

In late 2017, however, the Government introduced a new relief in respect of vacant properties.

This relief allowed landlords to potentially claim a tax deduction for up to €5,000 of expenses incurred in the 12 months before letting a property and which had been unoccupied in that 12-month period.

This relief was due to expire on 31 December 2021 but Budget 2022 has extended the relief for a further 3 years up to 31 December 2024.

 

 

Date published 13 Oct 2021

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.