The property related provisions in the Finance Bill 2025 continue the Government’s stated aim on housing supply and affordability. However, the below measures may not have a large enough impact to really affect the current state of housing availability.
The Bill extends and improves a number of reliefs aimed at supporting landlords, tenants, and housing supply.
The pre letting expenses deduction, which provides tax relief for qualifying expenditure incurred on previously vacant properties, is extended for a further three years, allowing claims on expenses incurred up to 31 December 2028. This measure is intended to assist in promoting the refurbishment of vacant property so it is available for use, thereby increasing housing supply.
The retrofitting relief is also extended to 31 December 2028 and amended to make the scheme more flexible. From 2026 onwards, landlords can claim qualifying expenditure in the year in which it is incurred, rather than having to wait until the following tax year. In addition, the number of qualifying properties is increased from two to three per landlord.
Another new measure is the introduction of a corporation tax exemption for rental income earned from cost rental dwellings designated under the Affordable Housing Act 2021. The exemption applies to income arising from properties designated as such on or after 8 October 2025.
The aim of the cost rental model is to provide secure, long term rental accommodation at below market rents. The introduction of a full tax exemption should theoretically improve its attractiveness.
The Living City Initiative, originally launched in 2015 to promote the regeneration of historic urban centres, is extended to 31 December 2030 and updated to make its availability more wide ranging.
The key updates include:
These amendments should align the scheme more closely with the objectives of the government.
It should be noted that as part of the Budget speech from the Minister it was mooted that the LCI would be extended to include Athlone, Drogheda, Dundalk, Letterkenny and Sligo.
The Bill also includes a number of stamp duty updates that provide continuity and clarity.
The refund scheme for residential developments under the Stamp Duties Consolidation Act 1999 is extended to 31 December 2030, providing ongoing support for developers who commence and complete qualifying housing projects within defined timeframes. The extension includes additional flexibility for multi-phase and large-scale developments, recognising that such construction projects can take a prolonged period to bring to completion.
A new stamp duty exemption is introduced for share transfers in smaller listed companies, defined as those with a market capitalisation of under €1 billion as of 1 December in the preceding year.
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Author: Richard McAufield
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