Tax Breaks - Hotels, Holiday Camps and Holiday Cottages

Tax Relief for Hotels, Holiday Camps and Holiday Cottages
Hotels and Holiday camps are entitled to capital allowances, which reduce your taxable income, as follows:-
Years One - Six 15% of capital expenditure allowed as a capital allowance Year Seven 10% of capital expenditure allowed as a capital allowance
The above allowances apply to expenditure incurred on or after 27/1/1994.
There is a slightly different allowance for holiday cottages:-
Holiday Cottages	10% of capital expenditure allowed as a capital allowance each year
As the scheme is still relevant for some, we will keep the "other relevant points" section below...
Hotels & Holiday Cottages - Archive - Other Relevant Points
The Finance Bill 2001 introduced a change whereby investors could no longer claim grant aid and capital allowances in respect of a hotel. In order to comply fully with EU rules, the Finance Bill 2002 has widened this to exclude any form of State aid other than the Capital Allowances being received in respect of that project. There is a limit for individual passive investors; your capital allowances claimable against non-rental income are limited to €31,750/£25,000 However, in the case of Hotels, there is NO offset against non-rental income allowed. However, hotels located in the following counties are not subject to the previous capital allowance restriction:- Cavan Donegal Leitrim Mayo Monaghan Roscommon Sligo Hotels and Holiday Camps must be Bord Failte registered Please note that in the case of holiday cottages, the capital allowance must be offset against income from the cottage; this applies where the expenditure was incurred after 24th April 1992.
The Role of Boylan & Dodd
How will we help you utilise these allowances? We will:- ensure your hotel or holiday camp is approved by Bord Failte assist you in taking full advantage of the capital allowances available Please EMail us by clicking here.