The IPOA Pre-Budget Submission has been submitted to the Minister for Finances.  Brief details of our recommendations are outlined below.

 

Key Recommendations

 

• Rental loss incurred as a result of rent forgiveness, or as a result of the additional rent arrears protections provided by the State due to Covid-19, should be allowable as an expense.

 

• Treat letting property as a business.  Remove the restriction imposed by section 97 on rental business and treat the rental business in the same manner as any other business.

 

• Allow an exemption from Income Tax for Long-Term Leasing Structures to encourage long-term leasing, changing the mindset of property owners.

 

• Allow Local Property Tax as a deductible expense.

 

• Refurbishment Relief withdrawn in July 2008 should be reinstated with clear guidelines.

 

• Pension Provision – rental income should be treated as reckonable income for pension purposes.

 

• Building Energy Rating – monies spent on making a rental property more energy efficient should be allowable in the Tax year of expenditure.

 

• Accelerated Capital Allowances should be introduced for new capital expenditure to increase the supply of accommodation.

 

• Allow Capital Payment as an expense prior to computing rental income.

 

• Introduce Double Taxation relief for Letting Agent Fees to help retain landlords in the sector struggling with complex, confusing legislation.

 

• Allow Wear and Tear over 4 years to assist cash flow.

 

• Allow market rent restoration on the sale of property.

 

 

The full Pre-Budget Submission is available here.