Capital allowances on rental income - not allowed against USC?

D

deeobrien

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Hi all,

I am a PAYE worker with additional rental income (2020 first full year of rental). 2020 was my first year that required me to do self assessment via ROS. I'm currently filling in the details on the online Form 11.

I have capital allowance expenses (wear and tear etc) which are allowable at 12.% over eight years. For this year that works out at €767. I have filled 767 in on the Irish Rental Income panel in the 'Non-specified relief capital allowances (i.e. not included in Sch 25B)' box and the 'Capital Allowances used against rental income in the year 2020' box.

However it seems to only have allowed the capital allowance against the Income Tax and PRSI calculations and not the USC calculations. When I look at the Calculate panel I can see it added an 'Rental Capital Allowances-Self' with an amount of 767 under the Computation of the PRSI section but not the USC section. Is this expected? Or is there some other box on the rental panel that I should have entered the 767 into?

Form11-CalculatePanel.JPG


Deirdre
 
Ok, thanks. I had a bit of battle with the form yesterday as only some of my Tax credits auto populated. I just wanted to make sure I wasn't missing something.

It does seem strange that they allow it against PRSI but not USC. It seems a bit inconsistent. It's also a pity that the https://www.revenue.ie/en/property/rental-income/irish-rental-income/ pages only seem to deal with Income tax. They don't include PRSI or USC in their examples - or even mention that there might be a liability there.
 
deeobrien said:
hey don't include PRSI or USC in their examples - or even mention that there might be a liability there.
Click to expand...
USC was introduced to basically have nothing allowable against it as at the time ten years ago there was a lot of income tax foregone due to various reliefs (less now).

Revenue are not very helpful on PRSI it's true. They simply see themselves as collecting it on behalf of the Department of Social Protection.
 
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