How Owner Occupier Residential relief works – Living City Initiative
An individual who incurs qualifying expenditure (which must be at least €5,000) is
entitled to tax relief by way of a deduction from their total income.
The expenditure is written off over a ten year period at a rate of 10% per annum.
Specific conditions for claiming:
- Your property must have been built before 1915.
- You must have a Letter of Certification from your Local Authority for the property.
- You must be the first occupier after the work has been completed.
- The property must be your sole or main residence.
The relief is only available where the property is the claimant’s sole or main residence.
For Example
Sean owns a house that is located in a Special Regeneration Area (SRA). She spends
€32,000 refurbishing the house between March and December 2019. He moves
back into the property in January 2020.
He is entitled to a deduction of €3,200 (€32,000 @ 10%) from her total income per annum for 10 consecutive years starting in 2020. Depending on the rate of income tax she pays this deduction of €3,200
could result in tax relief of up to €1,280 per annum (i.e. €3,200 @ 40%).
If all the relief for one year cannot be used in that year because of insufficient
income, the excess cannot be carried forward and is lost.
Subject qualify conditions and acceptance of application for relief from Revenue.
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie