Can you claim cost of renovation against rental income

[Uskane]

Someone told me that if you spend money renovating or improving a property and then rent it out, you can claim the cost of the renovations against any income earned on the rent therefore reducing tax due on the profit.....is this correct and if so what are the conditions?

Thanks

 

[jpd]

The revenue site has a brochure on this subject. Money spent on a property is allowable either against the rental income or the capital gains tax (CGT) when the property is sold or otherwise disposed of.

The cost of repairs is allowed against income but in general, the cost of renovating or improving a property would only be allowed against CGT.

 

[advisor]

Pre-letting expenses/expenditure is not allowable as a deduction against rental income. If for structural work can be offset against profit for CGT purposes on sale of property e.g re-wiring, new windows etc.,

 

[Bronte]

There was a scheme that has just ended that allowed renovation (improvements) to be offset against rent but I think it ends this year or last year. I think it was called the countryside renewal scheme. It's on the revenue website. Repairs you can offset against rent. If you cannot claim it against rent you can claim it against CGT when you sell. Agree that pre letting expenses can not be claimed against rent but they can be offset against CGT.