🧾 What are Capital (Wear & Tear) Allowances?

• These are tax deductions landlords can claim for furniture, fittings, and white goods in a rental property. Revenue+2mlmg.ie+2

• The idea is to allow for “depreciation” of these items (i.e., that they lose value over time), even though depreciation per se (for buildings etc.) isn't allowed in the same way. cpaireland.ie+1

✅ What You Can Claim

• Furniture & Fittings: Beds, chairs, tables, wardrobes, etc. Revenue+2mlmg.ie+2

• White Goods: Appliances such as fridges, dishwashers etc. Revenue+2Revenue+2

• Fixtures that are owned by you and in use at the end of each year in which the claim is made. Revenue+1

⚙️ Rates, Duration & Limits

• The rate is 12.5% per year of the cost. Revenue+2mlmg.ie+2

• You can claim this for a maximum of 8 years. After that, the allowance period ends. Revenue+2Revenue+2

🛑 What You Can’t Claim

• Major structural costs to the building (“capital expenditure” or enhancements) are not covered under wear & tear allowances. These generally do not qualify as capital allowances under this scheme. cpaireland.ie+2RSM Global+2

• You can’t claim the full cost of furniture/white goods in the year of purchase – you must spread the cost over the 8‑year period via the 12.5% rate. Revenue+1

🔍 Example

You buy a sofa for €1,000 and a dishwasher for €400 in Year 1:

• Wear & tear allowance = 12.5% × (€1,000 + €400) = €175 per year

• You can do this each year for up to 8 years. After 8 years, the claim ends.

• If you sell or dispose of an asset before the 8 years are up, you may need a balancing adjustment (either an allowance if you sell for less than the written-down value, or a charge if more) under some situations. Revenue

⚠️ Key Conditions & Practical Points

• Items must belong to you, must be in use, and must be in the rental property at end of the year. Revenue+1

• You must keep receipts/invoices or records. Revenue may require proof. sckgroup.ie+1

• If you let a property with furniture/fittings and later sell them or replace them, watch for balancing allowance/charge. Revenue

A handyman efficiently repairing a leaky faucet in a modern kitchen.