Section 23 query

Hi,

My query relates to the s23 relief I can claim on my rental property. If my only income is rent, do I have to offset all of my relief against my rental income in the year, thus losing my personal allowances, or can I offset just enough to keep my personal allowances?

thanks

Hi

Section 23 effectively creates a rental loss in your first year by taking your rents less the qualifying expenditure on the property. Therefore, you will have no need to use your personal credits against your rents as you will have a rental loss in this year and carried forward. If your only income is rent than your credits are lost. Please note section 23 relief will not cover non irish source rents.

Thanks for that,

I was hoping I could choose to offset a certain amount against my rental income, leaving my personal credits to cover the balance. Unfortunately that doesn't appear to be the case.

Thanks