Questions and Answers

What are wear & tear allowances?

I am a landlord doing my own tax return and I read about wear & tear allowances. What is this? I spent approx. €10k on new couches and beds when I was fitting it out 2 years ago.

Landlords can claim capital allowances in their tax return on the cost of furniture and fittings in their property. This is known as a wear and tear allowance. The current rate for these allowances is 12.5% of the cost per year, for eight years.

What can I use the wear and tear allowance for?

The allowance is granted for:

furniture you purchased for your rental property
the cost of the purchase of white goods, such as a fridge or a dishwasher.

Example

For example, if you spent €10k on new furniture you would claim a €1,250 deduction per year in your tax return, for a maximum of 8 years, commencing in the year you made the €10k spend.

Tax Review Thursday

On 18 May 2023 we are holding our first Tax Review Thursday in partnership with Make-A-Wish Ireland. In return for a €95 donation to Make-A-Wish Ireland you can sit down with an accountant to go through your tax together. You may find that you have reliefs and allowances, like the wear & tear allowance, that you haven’t been claiming. Find out more about Tax Review Thursday here

Date published 11 May 2023 | Last updated 11 May 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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