Landlords crying poor mouth as tax perk axed

AS IF THE current static rental returns were not depressing enough for landlords, come July another little perk of their work will be gone. The quaintly-named Rental Refurbishment Relief is to be abolished.

According to some landlords, the relief(!) was a reward for money spent on upgrading their flats and houses to the standard required by recent legislation.

All materials costs incurred by landlords on installing new kitchens, bathrooms and the like were allowable against the State’s tax take on their notional profits. Of course, the work had to be inspected and expenses receipted, but such was the spate of claims these inspections were often cursory, unless the landlord claimed VAT back on materials, in which case an inspector called.

Until a few years ago, as we know, the rental market was a free-for-all – think of legions of students inhabiting warrens of bed-sits in tottering Georgian houses, with loos on landings and an explosive gas geyser – and that’s only the old boy next door. But rafts of legislation in recent years upgraded standards and since the PRTB (Private Residential Tenancies Board) got going, landlords have been discouraged from increasing rents on poor accommodation.

Now, some landlords are crying poor mouth, as monies spent on refurbishment will no longer qualify for the same generous allowances, though basic maintenance costs will be allowed. Given the enormous profits which many of the old-style landlords made during the boom – in many cases with spurious claims of “refurbishment” to reduce their capital gains (profits) tax bills when selling houses – it’s hardly surprising the Department of Finance has decided to limit the concessions.