10.4 Expenditure and dilapidation Expenditure incurred in repairing and putting into a fit state for letting a property acquired in a dilapidated condition is normally inadmissible as a deduction under Case V of Schedule D. For Capital Gains Tax (“CGT”) purposes, however, such expenditure (including expenditure on decorations) may, in general, be regarded as allowable expenditure under section 552(1) TCA 1997.
Referring to this point on Revenue guidance note, perhaps painting a rental property before selling it can be considered an allowable expense for Capital Gains Tax (CGT) purposes, provided it falls under the definition of "enhancement expenditure" as set out in section 552(1) of the Taxes Consolidation Act 1997. This section allows for expenditure incurred on improving or enhancing the property, as long as it is reflected in the property's value at the time of disposal.
If the painting is part of necessary repairs or improvements to make the property more presentable and increase its sale value, it may qualify as enhancement expenditure. However, routine maintenance costs, which are more about maintaining the property's condition rather than improving it, would typically not qualify for CGT purposes.
In this case, assuming the repainting occurs just before valuation and listing