Tax relief on insulation costs

[GetMoving]

Hi,

I'm thinking of paying for external insulation on my rental house in Drimnagh. The estimated costs of the work are €20k.

My understanding is that I can consider this €20k as capital investment. As a result, I can get full tax relief on the costs at 12% each year over the next 8 years.

This means that I can recoup all of the capital investment through reducing my tax liability on the property's rental income.

Am I missing something or is this correct?

Thanks,

Getmoving

 

[Ciru75]

I would expect that this would be considered an enhancement for capital gains tax purposes, not for income tax.

Either way, if by "recoup all of the capital investment through reducing my tax liability" you mean that your tax bill would be reduced by €20k, that's not correct. Your taxable income (or, if I'm right, taxable gain on selling the house) would be reduced by €20k not your amount of tax payable.