Finance Act 2025

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Exemption of certain profits or gains arising from cost rental properties

33. The Principal Act is amended by the insertion of the following section after section 222:

“222A. (1) In this section—

‘Act of 2021’ means the Affordable Housing Act 2021 ;

‘cost rental dwelling’ has the same meaning as it has in Part 3 of the Act of 2021;

‘cost rental revocation’ has the same meaning as it has in Part 3 of the Act of 2021;

‘Minister’ means the Minister for Housing, Local Government and Heritage;

‘qualifying cost rental dwelling’ means a cost rental dwelling that is first designated as such by the Minister on or after 8 October 2025;

‘qualifying provider’ means a person chargeable in respect of the relevant profits or gains from a qualifying cost rental dwelling;

‘relevant profits or gains’ means the profits or gains, computed as provided for in section 97(1), arising from any rent and receipts from a qualifying cost rental dwelling.

(2) Notwithstanding any other provision of this Act—

(a) relevant profits or gains arising to a qualifying provider from qualifying cost rental dwellings which, but for this section, would have been chargeable to tax under Case V of Schedule D,

(b) any deficiencies, computed in accordance with section 97(1), arising to a qualifying provider in respect of qualifying cost rental dwellings,

(c) any reliefs under Chapter 8 of Part 4 that could be claimed by a qualifying provider in respect of qualifying cost rental dwellings, and

(d) any allowance that could be made to a qualifying provider, in accordance with Part 9, in respect of qualifying cost rental dwellings,

shall be disregarded for all purposes of the Corporation Tax Acts.

(3) Notwithstanding subsection (2), as respects the making of a return of income and self assessment which a chargeable person, within the meaning of Part 41A, is required to deliver under Chapter 3 of that Part—

(a) the provisions of Part 41A shall apply as if a qualifying provider in receipt of relevant profits or gains in any accounting period were, if such person would not otherwise be, a chargeable person (within the meaning of that Part) for that accounting period,

(b) any notice issued to the qualifying provider under section 959N shall be treated as if it had not issued,

(c) section 886 shall apply as if the relevant profits or gains received by the qualifying provider were chargeable to corporation tax, and

(d) the qualifying provider shall state on the return for the chargeable period—

(i) the number of qualifying cost rental dwellings in respect of which the qualifying provider is in receipt of rent and receipts,

(ii) the total amount of rent and receipts from the dwellings referred to in subparagraph (i) in the chargeable period, and

(iii) the profits or gains that would have been subject to corporation tax if subsection (2) did not apply.

(4) For the purposes of subsection (3), the relevant profits or gains, deficiencies, reliefs and allowances in respect of qualifying cost rental dwellings shall be computed in accordance with the Corporation Tax Acts as if subsection (2) had not been enacted.

(5) Where the Minister issues a cost rental revocation—

(a) the Minister shall notify the Revenue Commissioners in writing of the following:

(i) that a cost rental revocation has been issued in respect of the qualifying cost rental dwelling concerned;

(ii) the address of the dwelling referred to in subparagraph (i);

(iii) the date on which the cost rental revocation was sealed by the Minister,

(b) subsection (2) shall not apply to the profits or gains, losses and reliefs arising in respect of the dwelling referred to in paragraph (a)(i) on or after the date referred to in paragraph (a)(iii), and

(c) where an allowance under Part 9 for any accounting period would have been due but for subsection (2)(d), the amount due shall be deemed to have been granted.”.