Summary of Scheme
-
On completion, investors will pay promoters the purchase price plus Vat.
This includes site, property and fit-out of the units.
- Following completion the holiday homes will be let to the promoters/Hotelier
for 21 years (break clause at the end of year10) at an annual rent of
3.00% of the purchase price net of Vat guarenteed for seven years.
- Vat incurred on the purchase of the holiday homes is recoverable subject
to satisfaction of conditions. Vat 4A procedures will be used for the
purposes of the creation of the 21 year lease in favour of the promoters.
- Investors will be entitled to capital allowances of 10% per annum of the
qualifying costs.
- The capital allowances are available against Irish source
rental income only.
- Investors will be entitled to a deduction for interest
paid on borrowings taken out to purchase the property.
- A claw back of capital allowances will arise where the holiday
homes cease to be used for the purposes of the trade of hotel keeping within
10 years of first use.
- Stamp duty will be payable by investors.
Home
Contact
Us
Print Version
Graphics Version
