Section 23 Relief

[Liamos]

I have outlined a position below where one has a rental property with s23 relief and also capital allowances. Which relief has to be claimed first?

Obviously the second example is more beneficial.

Rental Income €100,000
Capital Allowances 40,000
Rental profit 60,000
Less S23 relief 500,000
Loss c/f 440,000

Rental Income €100,000
Less S23 relief 500,000
Rental profit NIL
Excess Capital Allowances 40,000 offset against other income

 

[Joe_90]

What are the nature of the "excess" capital allowances as most can not be off set against income other than Rental Income (Case V).