Tax Incentives for Landlords to Renovate and Refurbish
The latest Budget is focused on tackling housing supply, but buried within the measures are some important extensions and incentives that could offer significant financial benefits for landlords looking to maintain, upgrade, or return derelict properties to use.
Here is a concise look at the key measures you need to know, and how TJ O’Mahony can help you maximise these tax advantages.
1. Extended Income Tax Relief for Retrofitting
The most direct benefit for small landlords is the three-year extension of the entitlement to income tax deductions for retrofitting costs.
- The Benefit: Landlords can continue to claim income tax deductions for costs incurred when carrying out retrofitting works on their rental properties.
- The Deadline: This measure is now extended until 31st December 2028, giving property owners a solid window to plan and complete necessary energy efficiency upgrades.
- How TJ’s can Help: Retrofitting is part of our business. Whether you need high-quality insulation, efficient heating systems, or renewable energy supplies, we stock the materials and provide expert advice required to meet modern efficiency standards and qualify for this deduction. Investing in energy upgrades now means lower bills for your tenants and a reduced tax bill for you.
2. Incentives for Regeneration and Reducing Vacancy
New tax measures are designed to encourage the utilisation of existing building stock, meaning those older properties or sites requiring substantial work are now more financially viable to upgrade.
- The Derelict Property Tax: The introduction of a new Derelict Property Tax, which replaces the existing levy, reinforces the financial imperative to renovate rather than neglect vacant or dilapidated properties. Investing in renovation supplies and services from TJ O’Mahony is the necessary step to avoid this new tax.
- The Living City Initiative: This scheme, which offers generous tax relief for regeneration projects, has been extended until 31st December 2030 and broadened to include properties built before 1975 in key regional towns. This is a powerful incentive for landlords owning older properties in these urban centres to undertake major refurbishment works.
- How TJ’s can Help: For larger-scale renovations and regeneration projects, we are your essential partner. We supply the structural timber, plumbing, electrical fittings, and roofing materials, needed to bring an older property up to modern standards, ensuring you are prepared to leverage these important regeneration tax reliefs.
Act Now to Utilise Your Benefits
Budget 2026 has clearly incentivised landlords to focus on maintenance, retrofitting, and renovation. These works not only preserve the value of your asset and attract quality tenants, but now they also deliver tangible tax savings.
Visit your local TJ O’Mahony branch today. Our expert team can provide advice on the materials required for all qualifying retrofitting and renovation projects, helping you keep your property portfolio in top condition while reaping the benefits of these important tax measures.