About Milligan Place
Section 50 - Investor Information
With the added benefit of qualifying for Section 50 tax relief, investors can now offset their tax liabilities on their Irish source rental income. The Finance Act of 1999 introduced this “Section 50” relief in respect of the construction, conversion or refurbishment of rented residential accommodation for third level students.
The Department of Education and Science has issued the qualification guidelines for this type of tax relief. Essentially the guideline states that the accommodation must be available for the use of students for the academic year, outside of this, the properties can be let to non-students. The tax relief available to investors in Milligan Place Residences, to offset against all of their Irish source rental income, will be in the region of 80% of the purchase price of the property (not including the fit-out, as Capital allowances also apply to this). Interest relief is also available to investors on monies borrowed to fund the purchase. Rental income will be pooled for the academic year
Commonly Asked Questions regarding Section 50
Q1: Is Section 50 the same as Section 23?A: Section 50 is described as Section 23 type relief. This means that tax relief can be claimed on the purchase price (less site costs) against all rental income derived in the State. The main difference to you the investor is that Section 50 apartments must be let to students attending, approved 3rd level institution, e.g., Sligo IT, St. Angela’s students accommodation.
Q2: How much tax relief is available?
A: Circa 80% of the purchase price is available as tax relief against all rental income derived in the State.
Q3: Can I claim tax relief in the first year?
A: Yes, if you have sufficient Irish rental income to fully utilise all of the tax relief in Year 1 you are allowed to so do. Section 50 is flexible in how the relief is allocated against your other rental income. The length of the tax break is 10 years. However, any unutilised relief at the end of the 10-year period can be carried forward to subsequent years.
Q: Can I use tax relief from Milligan Place Student Accommodation Residences against other rental income I have in Ireland?
A: Yes, tax relief from your investment in Milligan Place Student Residences is available for all rental income derived in the state of Ireland. This refers to both residential and commercial income.