Revenue has published new guidance on the enhanced deduction for eligible construction expenditure introduced by Finance Act 2025. The enhanced deduction allows companies to claim 25 percent of eligible construction costs, up to €50,000 per apartment, for completed developments. In broad terms, a completed development refers to a qualifying apartment block that meets certain defined conditions.
A qualifying apartment block is a multi-storey building comprising of at least 10 apartments and is either:
- a newly constructed building, or
- a building or structure that, as part of a qualifying refurbishment, has undergone a material change.
To claim the enhanced deduction, the company must be a relevant person which is specified as a property developer or a relevant contractor. The relevant person must be carrying out a relevant property development trade or a qualifying trade when developing the completed qualifying apartment block and the deduction must be pro‑rated based on the company’s beneficial ownership share in the development.
The enhanced deduction is in addition to the standard trading deduction and further details of the definitions are included in the guidance together with examples and calculation information.
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