Wear and Tear Allowance

A capital allowance for certain qualifying fixtures and fittings in rental property.

Definition

Wear and tear allowance can apply for certain qualifying items in a rental property. Eligibility and rates depend on the asset type, purchase, and Irish rules for the relevant period.

Why it matters

It can reduce taxable rental profit by allowing capital allowances on qualifying items.
It can change the effective tax rate on rental income for landlords.

Common use cases

Estimating net rental profit
Reviewing allowable deductions
Planning renovation and furnishing spend

Related terms

Rental Income

Disclaimer

This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.

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Definition

Wear and tear allowance can apply for certain qualifying items in a rental property. Eligibility and rates depend on the asset type, purchase, and Irish rules for the relevant period.

Why it matters

It can reduce taxable rental profit by allowing capital allowances on qualifying items.
It can change the effective tax rate on rental income for landlords.

Common use cases

Estimating net rental profit
Reviewing allowable deductions
Planning renovation and furnishing spend

Related terms

Rental Income

Disclaimer

This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.