Living City Initiative (LCI)
Rented Residential Relief and Commercial Relief
These reliefs work by allowing you to claim capital allowances over a period of seven years.
There is no upper limit for the amount you can spend, but the maximum amount of tax relief you can claim is €200,000. This is outlined in more detail in Tax and Duty Manual 10-13-01.
You claim 15% of the qualifying costs for the first six years and 10% in the seventh year. You can also claim any unused capital allowances from previous years.
If you have insufficient income in any year and do not get to use the capital allowances, they are not discarded. They can be carried forward until such time as you can use them.
If you are not actively engaged in your trade, you are a passive investor. You cannot carry forward any unused capital allowances beyond the tax life of the building to which they relate.
What costs are covered?
You can only claim for the cost of work that is carried out in the qualifying period. The date of actual payment is not taken into account.
You cannot claim relief for investing in either the rented residential, or commercial, elements of the scheme if you are either:
- a property developer
- a connected person.
A connected person is someone who:
- is related by blood or marriage to a property developer
- is in a business relationship to a property developer
- acts as a trustee for a trust of which the property developer is a beneficiary.
Next: Owner-Occupier Residential Relief