SMALL LANDLORDS WILL be able to apply for a tax break of up to €10,000 to retrofit their properties while the tenant is still living there, under new measures announced by Finance Minister Paschal Donohoe.

The scheme will provide for a tax deduction of up to €10,000 per property for certain retrofitting expenses incurred by the landlord, for a maximum of two rental properties.

Expenses can be deducted where the landlord has received a home energy grant from the Sustainable Energy Authority of Ireland (SEAI).

Retrofitting works carried out and certified by the SEAI can be claimed against Case V rental income the following year. The property must remain as a rental property for two years after the work has been carried out.

The landlord must also be tax compliant and registered with the Residential Tenancies Board.

The scheme will run for three years.

Donohoe said: “Landlords play an important role in the private rental sector and this measure is aimed at attracting and retaining small-scale landlords in that market. This new tax deduction is in addition to the SEAI’s grants and the combination of both measures offers substantial support to landlords to retrofit their rental properties.

“This will also assist in improving the quality and comfort of homes in the private rental sector and as such will be of benefit to individuals and families who are renting.”