Finance Act 2015 introduced a change to the interest deduction allowed for landlords who undertake to rent residential property for a period of three years to tenants in receipt of social housing supports, since 1 January 2016.

In normal circumstances, the interest deduction against rental income is restricted to 75 per cent of the total interest accruing on loans used to purchase, improve or repair rented residential property. The newly introduced section 97 (2)(k) Taxes Consolidated Act 1997 allows landlords to deduct the balance of the interest accrued (the 25 per cent) in each year of the three year periods on the day after the three year period ends.

To avail of the relief, the landlord must submit a Declaration of Undertaking of Interest on Borrowings to the Private Residential Tenancies Board (PRTB) within one month of the commencement of the tenancy.

Further details are contained in eBrief No. 51/16 here and Revenue has updated its Tax and Duty Manual.