Section 23 - unable to rent

elainem

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I have a S.23 property in Mayo but have been unable to rent it (8 houses out of 24 in estate unrented). My understanding is that if the house is available to rent (it is through two agents), and I am not living in it myself, I can still claim the S.23 relief. Is this true? I'm a bit worried that it might not rent again for a long time, maybe even for the year. It was rented until Sept, but I have been unable to get a tenant since, nor have I had any interest in the property, which is well maintained. Thanks in advance for advice and comments.
 
Since the recent budget, S.23 relief only applies to rent from the s.23 property itself, so strictly speaking you cannot claim the relief.

This is different to the case prior to the budget, you could have used it against other rental income (Ireland only).
 
Section 23

Hi! Lobby, thanks for your reply. I know I can't claim it against other properties now, but I can't let this one either. So do I lose the Section 23 or does it trigger a clawback. I'm afraid I won't now be able to let it for an entire year. I have tried everything - Daft.ie and several agents, and I have dropped the rent, but no luck. It's in a rurual renewal area - so was worried about a clawback for not being able to keep to the rules of letting it for a three-month period each year. I'm not sure from reading Revenue's stuff on it whether when you let it, it has to be for a lease of more than 3 months, or whether it has to be let for a period of 3 months. It had been let up untill last Sept for 5 years. However, now I have had not one person interested since Sept. If you can answer my queries, I'd be really grateful. Thanks.
 
You should read the Revenue.ie guide to section 23 -last updated June 2010.
My reading of it makes me believe that you do not have a clawback worry as long as it is available for rent.

Keeping records of the occassional ad on daft.ie or similar would be enough to persuade Revenue that you were trying to rent it.
But I really dont think they'd ask.

I repeat, you must read the rules on revenue.ie
 
Hi! Oldnick, thanks for your reply. I did read the Revnue rules as they were updated in June, but I wasn't sure my reading of it was correct. The last thing I need now is a clawback because I'm unable to rent it, but it did seem as if it just had to be available to rent, and when rented not on a lease for less thann 3 months.
 
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