Hi all
I need to ring revenue on this myself. When you follow the link below it clearly says that interest on tax is allowable to be off set against rental income.
But
when you go into the refernce material just below where it syas this you get the following excerpt copied and in Red below. Now this is dated from 1998.
If any one can confrim that below is outdated please do, I will post my reply from revenue when those lazy Feckers get back to answering their phone!
However, under the Finance (No. 2) Act 1998, the interest on borrowing used to purchase, improve or repair premises will not in certain circumstances be allowed as a deduction in arriving at the taxable rent.
New Restriction for Residential Premises
Subject to certain transitional arrangements, Section 1 of the Act provides that interest on borrowed money used on or after 23 April 1998, in the purchase, improvement or repair of a residential premises cannot be offset against rental income in arriving at the taxable rent (or allowable loss) in respect of that premises. The restriction covers individuals, companies, trusts and partnerships.
A residential premises is defined as a building or part of a building which is used or suitable for use as a dwelling. It covers both houses and apartments and includes any garden, yard or outoffice which is usually enjoyed with the building.
Notwithstanding what the premises was when acquired or how it was previously utilised, the restriction applies for any tax year or accounting period during which the premises is, at any time during that tax year or accounting period, a rented residential premises