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Home renovation scheme for landlords?

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  • 01-02-2024 8:16am
    #1
    lightspeed
    Registered Users Posts: 1,264 ✭✭✭


    Hi

    In have recently moved in with my Dad and I have rented out my own house which is just down the road. I anticipate I'll be back some day so I'm thinking it might be cost efficient to get any expensive tax deductible renovation works done now.

    I read that landlords can get up to €10k deduction in addition to SEAI grant which for semi D external insulation is €6k.

    I need to get a quote but looking online i expect it will be between €26k and €28k.

    Can anybody confirm can I claim capital allowances at 12.5% over 8 years for remaining balance of €12k (€28k-€10k-€6k)?expense incurred?



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    #2
    CryptoToFollow
    Registered Users Posts: 25 ✭CryptoToFollow


    You need to speak to a financial advisor as your understanding of tax appears to be limited.

    You should be aware that expensive renovations such as external insulation would not qualify for capital allowances. Instead it would add to the base cost of the house to reduce potential CGT when you sell in the future.

    Also it might have been more beneficial for you to have stayed in the house and rent out a room in the house as up to €14K could be tax free each year.

    Whilst I have no experience of getting external wrap done, your prices seem to be on the high side. I'd expect prices to be at least €5K lower based on online prices.



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    #3
    lightspeed
    Registered Users Posts: 1,264 ✭✭✭lightspeed


    Thanks, yes from reading further into it appears it would come under enhancement expenditure so only useful for tax purposes under CGT.

    I'm aware of the 14k rent a room relief but gross rent is at 30k per year so even with tax at marginal rate of 52% it seems better and less headache to rent whole house. I can also deduct the mortgage interest of course.

    If you google it though you will find it in finance act 2022 that expenditure which qualifys for SEAI grant can be deducted up to €10,000.

    With regard to price, i have got mixed price ranges but I'm told since brexit it has gone way up with one saying it would be between 15 to 20k after the 6k grant.



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