Property Clinic

Why can’t I claim tax relief on my student-flat investment?

Property Clinic: We tried to claim section 50 relief but were told it did not exist

The development of student accommodation schemes was encouraged in the past through the provision of tax relief for investors. Photograph: Sturti
The development of student accommodation schemes was encouraged in the past through the provision of tax relief for investors. Photograph: Sturti
Suzanne O'Neill
Tue Sept 19 2023 - 06:00

I purchased a property in a student accommodation development. [A tax relief scheme] was advertised extensively in national newspapers at the time and in brochures, which I still have. When we went to claim section 50 relief, we were told it did not exist. Is this possible?

Section 50 relief is a historic relief that applied to student accommodation schemes and was introduced in the Finance Act of 1999. It provided for section-23-type relief whereby expenditure incurred on student rental accommodation could be set against the rental income from the property and other Irish rental income.

The scheme is now terminated, as the expenditure had to be incurred before December 31st, 2006, with some extension to July 31st, 2008.

place. Suzanne O’Neill is a tax partner at  RSM Ireland
place. Suzanne O’Neill is a tax partner at  RSM Ireland

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However, unutilised relief may still be claimed where a buyer has relief carried forward. When an investor purchased a unit from a developer, they should have received a certificate of compliance. This certified that the accommodation was within the specified floor area limits and that it complied with the standards set out in the guidelines and the relevant department’s standards. The application had to be made by the builder/developer.

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In addition, there were other qualifying conditions such as the type of leases entered into. The tax relief should have expired by now on any sales of student accommodation built when the scheme was in place.

Suzanne O’Neill is a tax partner at RSM Ireland

Do you have a query? Email propertyquestions@irishtimes.com

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