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Tax on rental property

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  • 05-08-2016 8:59pm
    #1
    proteuspal
    Registered Users Posts: 114 ✭✭


    Hello guys
    I am an Irish man, living and working in the UK this last few years. I am fully tax resident in the UK and I am self employed over here. I started renting my Irish property back in April.
    Can someone please tell me whether I should be getting my UK, or an Irish accountant to complete my annual tax return? Both accountants are saying they can do it, but I want to find a definite answer! Surely it must be one of them that must do it? I would assume it should be the Irish accountant since the property is in Ireland, but I really want to know which one for definite

    Many thanks
    Proteuspal


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    #2
    DubCount
    Registered Users Posts: 1,089 ✭✭✭DubCount


    As far as I know, you will need to do a tax return in both Ireland and the UK. As the property is located in Ireland, you have to do a return to the Irish Revenue Commissioners. As you are tax resident in the UK, you need to declare your worldwide income to HMRC, though you can claim any tax paid in Ireland as a credit against your UK tax liability on the income.


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    #3
    proteuspal
    Registered Users Posts: 114 ✭✭proteuspal


    thanks DubCount


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    #4
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    You can claim the fees for an letting agent and accountant as a tax credit/ expense in your irish tax return .
    all tenants must be registered with the prtb in ireland .
    http://www.prtb.ie/

    register tenant BEFORE sending in the tax return.
    use prtb receipt to prove the tenant is registered .


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    #5
    proteuspal
    Registered Users Posts: 114 ✭✭proteuspal


    Many thanks riclad


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    #6
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,384 CMod ✭✭✭✭Pawwed Rig


    riclad wrote: »
    all tenants must be registered with the prtb in ireland .
    http://www.prtb.ie/

    register tenant BEFORE sending in the tax return.
    use prtb receipt to prove the tenant is registered .

    That is not true unless you have mortgage interest that you want to take as a deduction.

    To answer the actual question asked a return needs to be filed in both countries. You will get a credit in UK for tax paid in Ireland.
    Someone usually jumps in with a spiel about Irish withholding tax and Irish resident agents at this point too but it is not a big issue once you stay on top of things.


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    #7
    Baby01032012
    Registered Users Posts: 1,622 ✭✭✭Baby01032012


    Pawwed Rig wrote: »
    That is not true unless you have mortgage interest that you want to take as a deduction.

    To answer the actual question asked a return needs to be filed in both countries. You will get a credit in UK for tax paid in Ireland.
    Someone usually jumps in with a spiel about Irish withholding tax and Irish resident agents at this point too but it is not a big issue once you stay on top of things.

    It is the law that all tenancies need to be registered with the RTB. It is a consequence of not having a tenancy registered that the landlord can not claim mortgage interest as a deduction from rental income, however it is not the reason.


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    #8
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,384 CMod ✭✭✭✭Pawwed Rig


    Baby01032012 wrote: »
    It is the law that all tenancies need to be registered with the RTB. It is a consequence of not having a tenancy registered that the landlord can not claim mortgage interest as a deduction from rental income, however it is not the reason.

    Nothing to do with the OPs question though. Whether you are registered or not is irrelevant for tax purposes unless you are seeking mortgage interest relief.

    It is the law to have motor tax
    It is the law not to kill
    It is the law not to steal.
    All irrelevant to the OPs question.


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    #9
    proteuspal
    Registered Users Posts: 114 ✭✭proteuspal


    Yes, I would certainly hope to use mortgage interest as a deductible expense.
    Thanks to all contributions so far guys


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    #10
    Pro Hoc Vice
    Closed Accounts Posts: 6,087 ✭✭✭Pro Hoc Vice


    Pawwed Rig wrote: »
    Nothing to do with the OPs question though. Whether you are registered or not is irrelevant for tax purposes unless you are seeking mortgage interest relief.

    It is the law to have motor tax
    It is the law not to kill
    It is the law not to steal.
    All irrelevant to the OPs question.

    Yes the op asked a specific question, and some also said if you have not thought of this you must also be registered with PTRB. Seems related to the issue while not the question. So unless the information is wrong it may be of use to the OP.


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    #11
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Baby01032012 wrote: »
    It is the law that all tenancies need to be registered with the RTB. It is a consequence of not having a tenancy registered that the landlord can not claim mortgage interest as a deduction from rental income, however it is not the reason.

    Not all tenancies need be registered with the RTB. Only those comprehended by the RTA need be registered.


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    #12
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    Register the tenant first soon, before you send in the tax return.
    in order to claim 75 per cent of loan interest as an expense .
    i think theres an extra charge if the tenant is registered late ,say x months after the tenancy starts .
    all the info is on the prtb website .
    When I say tenant i mean someone staying in private rental accomodation,
    not someone in a council house .


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    #13
    jaffusmax
    Registered Users Posts: 1,602 ✭✭✭jaffusmax


    proteuspal wrote: »
    Hello guys
    I am an Irish man, living and working in the UK this last few years. I am fully tax resident in the UK and I am self employed over here. I started renting my Irish property back in April.
    Can someone please tell me whether I should be getting my UK, or an Irish accountant to complete my annual tax return? Both accountants are saying they can do it, but I want to find a definite answer! Surely it must be one of them that must do it? I would assume it should be the Irish accountant since the property is in Ireland, but I really want to know which one for definite

    Many thanks
    Proteuspal

    If the tenant is collecting the income tax charge on your behalf you will need to have the tenant complete a Form R185 and submit it to revenue at the end of the year.

    Then your account in the UK can claim a credit on your behalf. Revenue in Ireland will then already have a record of tax remitted.

    http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21


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