What are tax reliefs?

A tax relief is a component in your tax bill that reduces the income on which you pay your tax. This is usually given as a refund of tax paid.

The amount of relief you pay depends on the rate of tax you pay so its wise to speak to an accountant if you’re unsure. Professional accountants are trained to help individuals and businesses in Ireland with their accounts and financial obligations to Revenue.

As a new company or Sole Trader, the last thing you want to do is under-delcare on tax, or pay too much tax. Understanding what tax reliefs and tax credits you can claim will help you reduce your tax liability at the end of the year.

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Tax relief for refurbishing old properties

This tax relief aims to bring more families, shops and services back into ‘special regeneration areas’. This includes areas in the city centers of Dublin, Cork, Limerick, Galway, Waterford and Kilkenny.

The Living City initiative allows owners of houses that are at least 100 years old to claim tax relief for their refurbishment or conversion.

This relief is available at a rate of 10% per year for 10 years against your income. However, the property must meet the qualifying conditions and is only available where the property is the claimant’s only or main residence.

You can learn more about tax relief during our Startup Webinar.

Can you claim tax relief on commercial buildings?

Owners of commercial buildings can benefit from the scheme, if their property is within the designated “special regeneration area”. This applies even if it is not more than 100 years old.

The commercial element provides for tax relief over a 7 year period.

This relief is given by an accelerated capital allowance of 15% of qualifying expenditure for each of 6 years and 10% in year 7. This element of the relief applies only to the refurbishment or conversion of premises for the provision of retail and other services within the State.

The maximum level of actual tax relief which can be obtained in respect of any individual project is capped at €200,000.

Need help with accounting?

Understanding the different tax credits and reliefs can be a difficult concept to wrap your head around. Especially if you’re running and managing your own business in Ireland. We have a guide dedicated to common tax credits in Ireland, but if you would like to receive information on your specific situation please get in touch with our Client Services Team. We are always happy to talk to you about the services you need to get your business off to the right start!

Let us know how we can help by calling us on (01) 905 93604 or by emailing us at hello@accountantonline.ie. 

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