Residential Premises Rental Income Relief – Landlords Tax Relief

Landlord’s Tax Relief Ireland, Residential Premises Rental Income Relief, RPRIR

Are you an individual landlord of rented residential property in Ireland?

If so, this nine page Revenue guidance material published today may be of interest to you, especially if you are a non-resident landlord.  In general, non-resident individuals are not entitled to any personal tax credits, reliefs and/or deductions. Section 1032 TCA 1997, however, provides that in certain circumstances, a portion of the credits, reliefs or deductions may be available, which is calculated by the ratio the Irish source income bears to the individual’s total income.

Are there any scenarios in which a clawback of the Relief may arise?

Section 4 of this Revenue guidance manual sets out the circumstances in which a clawback will arise:

The relief will be reclaimed in the following situations:

1. If the landlord ceases to be a landlord of a qualifying premises within four years of the first year in which relief is claimed. This may arise because the residential rental property is sold or gifted or because the landlord has removed it from the rental market

2. If the property is not rented to a tenant and is not actively listed for rent.

3. If the property’s use changes from a residential letting to say, a holiday home or a short-term letting.

4. If the property is rented to a connected person or a relative.

Important points to keep in mind:

• In circumstances where the landlord no longer qualifies for the RPRIR, a Revenue officer will amend the assessment for each year of assessment where the relief was claimed.

• The tax clawed back will not exceed the amount of relief actually claimed.

• The relief will not be clawed back in circumstances where the landlord dies during a year of assessment.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-03-04.pdf

If you are a landlord of rented residential property in Ireland seeking comprehensive tax advice or looking to regularise your tax affairs, and wish to deal with a Property Taxes Specialist please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.