Revenue eBrief No. 145/19

25 July 2019

Deductibility of loan interest in computing rental income

The purpose of this eBrief is to advise of amendments to Tax and Duty Manual Part 04-08-06  (Deductibility of loan interest in computing rental income) as a result of changes introduced by Finance Act 2018.

Section 97(2J) of the Taxes Consolidation Act 1997 (TCA) was amended to give effect to the Budget announcement that the amount of interest that may be deducted by landlords in respect of loans used to purchase, improve or repair a residential property is restored to 100% from 1 January 2019.  

The Manual has also been updated to remove material which is no longer current.