PPR change to investment property-are capital allowances deductible

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Wanttotradeup

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I am currently looking into buying a second property and renting out the first one. The first one was bought eight years ago and I would estimate €30,000 was spent on fixtures and fittings. If this was to go ahead would I be entitled to capital allowances at 12.5% for the next eight years as a deductible expense from the rental income?
 
There is no proper Revenue guideline in this area

However forum member mathepac works/worked for Revenue so he has posted before that Revenue's opinion here is that all assets have an 8-year tax life so suppose you moved out of your PPR after 5 years, then the F&F etc would still have 3/8ths of their tax life left so you would have €11,250 of Capital Allowances to claim and you could claim €3,750 each year for the next 3 years.

In your case the 8 years are already up so therefore you cannot claim any Capital Allowances

In my own professional opinion, I would get some sort of estimate as to what those F&F are worth now and claim Capital Allowances of 12.5% on THAT figure. Revenue will probably argue that you can't do this but you would have a strong case.

There is now way you could start claiming Capital Allowances on the €30K though, that's just taking the proverbial and if Revenue did happen to pull you up on it they would likely take a hardline stance then and not allow you to claim anything at all.
 
DB74 is right. You should estimate the market value of the assets and then claim 12.5% per year for eight years. Maybe they're worth €10k? I had stuff that had cost me around €20k and assigned a market value of €8k to it, so €1,000 capital allowances per year.
 
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