Is putting pyrite right allowable against rental income?

I had to pay an invoice for pyrite works of €2,800. Can this be utilised against rental income? Mr C.O’R., Dublin

It is never the most helpful reply but "it depends". On what, you ask? Most importantly, it depends on when the work to treat the pyrite was carried out. Revenue has a series of rules about what expenditure is and is not allowable against rental income before assessing tax liability, and one of the major exclusions is expenses that were incurred by you before the property was ever let.

So, if you bought the property and got the pyrite problem addressed before it was let for the first time, you’re out of luck. If the work was done during or between tenancies, you are into a greyer area.

Assuming the work took place after the property was let, the second issue is what heading pyrite treatment comes under. You are allowed deductions to cover repairs to the property and Revenue cites issues such as treatment to fix damp and rot, replacing broken roof slates. On the other hand, you are not allowed relief for “capital expenditure” such as additions, alterations or improvements to the property.

My guess, assuming the property was already rented, is that you are okay to set the €2,800 for the pyrite works against the rental income under the heading of repairs. If you are in any doubt, there’s no harm checking with the Revenue.

[ dcoyle@irishtimes.com ]