Income Levy & USC on Rental Income

Hi
Having looked at the Revenue FAQ on the above it says that

“Gross income is determined after deduction of legitimate expenses directly associated with the performance of the trade. This is in accordance with the normal principles of commercial accounting.
Legitimate revenue expenses directly associated with the performance of the trade can be deducted in calculating the taxable profit figure upon which the levy is chargeable. “


Based on the above is it reasonable to assume that I can deduct interest (at 75%) as "a legitimate expense"........"in accordance of the normal principles of commercial accounting" ?

Rental income is not considered a trade so there are slightly different rules. In a trade expenses used wholly and exclusively for the purposes for the business are allowable. Rental income - only expenses set out in legislation are deductible.

One of these allowable expenses is interest on loan to acquire property. If it is a residential property the allowable interest is restricted to 75% and is only allowable if registered with the PRTB.

Income levy or the USC on rental income would be after deducting allowable interest.