Airbnb - Capital Allowance

Stupify · 26-03-2024 11:00am #1

Hi, I'm in the process of building a granny flat beside my house with the purpose of short-term letting.

It'll be available all-year for short term lets so I believe the income will fall under Case-V trading income for tax purposes. With regards to the capital allowances available for Case-V income it is my understanding that this includes things such as beds, furniture etc. But what about the building itself? Can I claim capital allowances on that?

Stupify · 26-03-2024 11:04am

Apologies I meant to write Case-I income, Case-V is rental income which short-term lets do not fall under.

AndrewJRenko · 26-03-2024 12:02pm

https://www.boards.ie/discussion/2058343635/airbnb-capital-allowance

Do you have planning permission? Planners won't usually allow 'granny flat' developments these days, and short term lets have planning issues too.

Stupify · 26-03-2024 1:45pm

It's not in a RPZ and doesn't require planning permission, already checked this out

FishOnABike · 26-03-2024 2:37pm

Would it require planning as a commercial/business development - it may not be covered by the 40m² exemption and if beside your house may not be covered by any exemption from planning.

Stupify · 26-03-2024 2:40pm

From what I've been told I am in the clear, can only go on that. I'll be retaining an accountant once works are finished but just was curious on the Capital Allowance situation for my own future planning purposes.

ThreeGreens · 26-03-2024 2:48pm

No. No capital allowances on the building itself. Only the fixtures and fittings.

JVince · 26-03-2024 2:55pm

I'm guessing there's still possible access to the granny flat from the main house even if its locked. Hence the planning is probably fine.

airbnb is a pain in the ass. They expect 5 star rooms for 2 star prices. They'll review and pick up on the smallest of blemishes and many will leave the place in a mess.

I'd check with local companies about letting it on 2 month / 3 month stays. You'd be surprised at the response. I have a holiday home for 12 months to a wind farm company that wanted a local place for staff to meet and some to stay overnight from time to time.

ballyharpat · 26-03-2024 6:12pm

I' m doing Airbnb 9 years, I've had 1 in 10 that can bea bit difficult, 1 in 100 that I would not want back, but over the last few years, I've really had very little to complain about, I'd definitely do Airbnb in a granny flat if I could, way easier and more freedom than renting out as a Long term let, I also have properties let out on a LTL, the return is less than a third of Airbnb income.

FishOnABike · 26-03-2024 6:44pm

https://www.boards.ie/discussion/comment/121941427#Comment_121941427

https://www.boards.ie/discussion/comment/121941789#Comment_121941789

I'd want that in writing from your planning authority before doing anything or it could be a very expensive mistake. From your description I can't see how it could be exempt.

26-03-2024 7:03pm

https://www.boards.ie/discussion/comment/121942785#Comment_121942785

What is your issue with planning, if the extension is less than the area which is exempt and part of an existing residential property, why would it need planning permission to build? The op has checked.

https://www.boards.ie/discussion/comment/121941889#Comment_121941889

Ive been doing Airbnb for 6 years, never had any of the issues you describe. If you claim your rooms are 5 star and they are actually 2 star, of course you are going to have complaints. All ads have photos and descriptions, bar some yanks (who can be a little painful) expecting turf fires and heating on full blast when it’s 25 degrees in the summer, I haven’t had issues with guests expecting more than what is advertised.

FishOnABike · 26-03-2024 7:58pm

What is your issue with planning, if the extension is less than the area which is exempt and part of an existing residential property, why would it need planning permission to build? The op has checked.

OP hasn't said whose opinion they got on planning.

I see two potential issues. Change of use from residential to commercial (not wholly related to the use of the house for domestic purposes) and the extension being to the side of the property rather than the back.

Either of the above could potentially be an issue for the OP if they proceed without either getting full planning permission or a statement of exemption from planning permission (Exemption Certificate).

26-03-2024 8:13pm

https://www.boards.ie/discussion/comment/121943036#Comment_121943036

The op has already stated that the property is not in a RPZ so does not require planning for short lets, and it’s the op’s home.

The only is is whether it’s a separate structure or an extension onto the rear of the op’s home (which can also depend on which aspect faces the road). If the op has been told planning isn’t necessary, we have to take him at his word that he asked the relevant authority.

https://www.citizensinformation.ie/en/housing/owning-a-home/home-owners/renting-your-property-for-shortterm-lets/

Airbnb - Capital Allowance

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