Revenue - from 1/1/2023 to 31/12/2025 -Landlord Deduction for retrofitting - must have SEAI grant - can't dump tenant

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WizardDr

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Useful Revenue guide.

Summary:
  • A tax deduction of up to €10,000 per property in respect of retrofitting works is available, with landlords being able to claim for up to two properties.
  • A deduction for USC and PRSI
  • Retrofitting works carried out in a year can be claimed against Case V rental income for the following year.
  • The amount of the SEAI grant received is not considered to be expenditure incurred by the landlord.
  • Retrofitting expenditure must be incurred between 1 January 2023 and 31 December 2025.
  • The landlord must be tax compliant and registered with RTB unless the property is an exception
  • There will be a clawback of the deduction claimed where, during the two year period following the end of the year in which the retrofitting works are completed, the landlord serves a notice to quit on the tenant or where the landlord ceases to let the premises as a residential property.
 
There was me thinking it was something I could use, but I see it's only for properties with tenants in them. I've been told it's complicated to get SEAI grants.
 
This could be quite useful to me but I want to make sure I understand correctly. Could someone clarify please? I need to retrofit a place I'm letting out at the moment. I've contacted a retrofitting expert and was quoted 25K for the job. That's including the deductions for various grants. So I should be eligible for the full €10K.

Does that mean my rental income for the year will be reduced by 10K, so instead of being taxed on 100K rental income, I'm now taxed on 90K rental income, therefore saving me approx. 5K? Or does it mean I will receive a reduction in my tax bill for a full €10K? The latter is obviously a lot more attractive.
 
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