Investors looking to purchase a holiday home to rent to tourists with the benefits of generous tax breaks may be interested in the new Belair Village development at Ashford, Co Wicklow.
Set in the grounds of the Belair Hotel, this new scheme comprises 20 semidetached dormer houses designed in a traditional manner to provide for short-term tourist use. The Phillips Partnership is handling sales. Prices for the two and three-bedroom houses are from £180,500 and include fit-out to Bord Failte four-star standard plus VAT. The Belair Hotel has good equestrian amenities and is located close to a forest area of Wicklow.
Once Bord Failte approval has been obtained, the holiday homes will qualify for capital allowance relief against all Irish rental income, subject to conditions.
Over 87 per cent of the net purchase price will qualify. The relief works out at 10 per cent allowance per annum over a 10-year period, based on the purchase price excluding the site costs, stamp duty and VAT.
In addition, investors qualify for tax allowances in respect of fixtures and fittings which can be offset against rental income at a rate of 15 per cent per annum for the first six years, with the balance in year seven. Stamp duty is payable by investors on the cost of the holiday home but they can offset rental income against mortgages.
The houses are 1,100 sq ft over two floors. Accommodation includes a lounge, kitchen-cum-breakfastroom, and a third room that may be used as a bedroom or a diningroom. Upstairs there are two double bedrooms, the main one en suite, and a bathroom.
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