Legality of Section 23 scrapping to be tested

PROPERTY owners are “facing bankruptcy” following the Government’s decision to scrap Section 23 relief and have said they will challenge the legality of the decision.

Section 23 provides tax relief for the capital expenditure incurred on the construction, refurbishment or conversion of rented residential accommodation in certain designated areas.

However, the Irish Property Owners Association (IPOA) is set to challenge the decision to abolish the measure, saying the Government brought in the incentive to encourage investment, but are now “fleecing” the people who purchased these properties. The IPOA said it was “bordering on the criminal” to change the terms of a contract after it has been signed and the monies paid.