Deduction for retrofitting expenditure
Clawback of the relief
The relief will be clawed back if, within two years after completing the retrofit:
- you breach your obligations under the Residential Tenancies Act 2004
- you sell or transfer the property
- you change the use of the property so that it is no longer occupied by a residential tenant. For example, you start renting it as a short-term letting.
- the tenant terminates their tenancy
- or
- you terminate the tenancy because the tenant is in breach of their obligations under the lease.
However, no clawback will arise if a tenant ends their tenancy, or you terminate due to a breach in the tenancy provided:
- you let the property again
- or
- you are actively and genuinely marketing the property for rent at market rent.