Revenue eBrief No. 255/25

31 December 2025

Deduction for Retrofitting Expenditure

Tax and Duty Manual (TDM) Part 04-08-20 - Deduction for Retrofitting Expenditure - provides information on a tax deduction against rental income for certain retrofitting expenses incurred by landlords on rented residential properties. It has been updated to reflect Finance Act 2025 amendments as follows:

  • In Paragraph 1:
    • The provision has been extended to 31 December 2028,
    • The number of qualifying premises on which retrofitting expenses can be claimed has been increased from two to three,
    • Retrofitting expenses can now be claimed in year.
  • A table has been included into the TDM to clarify the procedure for claiming retrofitting expenses pre and post Finance Act 2025.  
  • Some examples have been updated to reflect Finance Act 2025 amendments.