Questions
& Answers
What
is section 50?
S50 Relief is a section 23' type relief whereby investors are entitled
to deduct the qualifying cost of the construction, conversion, or refurbishment
of student accommodation units, exclusive of the site cost, against Irish
source rental income. The relief is available as a deduction in year 1
provided the property is let under a qualifying lease. Any relief not
used may be carried forward and used in subsequent years.
What
is the relief available?
In the Brookfield Hall approx 87% of the purchase price (excluding the
fit out cost) can be used as rental deductions. In addition capital allowances
can be claimed on the fit out at 12.5% p.a. over 8 years.
Can
I use the relief against other rental income
The deductions available are non- ring fenced; therefore they can be used
to offset rental income arising not only from Brookfield Hall, but also
any other rental income once it originates within the state.
Can
I carry forward unused deductions?
Yes, if the deductions are not fully utilised during the 10year period,
they can be carried forward indefinitely until they are fully used.
How
long is the tax break?
The life of
tax break is ten years. After ten years your obligations under Section
50 end and owners are free to use their units ad they see fit.
Can
I take all the deductions in the first year?
Yes, but one
can be fully flexible in how the deductions are allocated over the 10
year period.
Will
the management company be responsible for the daily running of the hall?
Yes the investors
will not be required to take an active role in the running of this turnkey
development
Is
the development certified for Section 50?
Yes, the University of Limerick has certified the development as qualifying
for Section 50.
Can
I claim Mortgage Interest Relief?
Yes relief on
interest paid on borrowings can be claimed.
Who
sets the rent for the individual bed spaces?
The management
company will set the individual rents. It will be set at the prevailing
market rates, on a yearly basis.
How
is the rent paid?
Students will
the rent in advance, in two moieties.
These will be due in September and January of each academic year.
Can
I sell my unit during the 10-year period?
Yes. You are free to sell your property at any time.
However, there will be a clawback of the Section 50 relief claimed where
the premises is sold within ten years of the date of first letting. Under
current legislation subsequent purchasers can claim the original allowance
where clawback arises.
What
other accommodation is available by the University of Limerick?
The University
has three student villages, Dromore Kilmurray and Plassey, which together
accommodate over 1,400 students. These spaces are now sold out for the
academic year beginning in September 2003. Their waiting lists are also
closed.
How
many students are in the college?
There are over
12,400 students currently attending the University of Limerick according
to their Admissions Department.
.Are
the apartments situated in a highly desirable area for student accommodation?
Castletroy is
widely recognised as prime residential area with a strong tradition of
student and young professional letting.
Will
the apartments be properly furnished?
The apartments
offer generous living quarters with a high proportion of them incorporating
a sun area. All bedrooms are ensuite and each student will have a personal
study desk with a direct high-speed fibre optic link to the University.
The fit out will be to a very high standard.
|
