Tax and UK rental property

Hi

Is there a website I could look up to understand what we have to do tax wise to ensure our returns are correct.

We've had a house in NI for the last 15 years or so that was occupied by a relative on a no rent basis. As that relative has passed on, the house was vacant for a few years and just used for holidays.

We've had it rented for a year from Jan 13. It has been vacant since Jan 14 and new tenants are due to go in 1 May.

I think we have to make a return to the UK revenue and Irish revenue but the only information I can find on this is dated 2009.

A point in the right direction would be welcome.

Thanks

phoenix said:

I think we have to make a return to the UK revenue and Irish revenue but the only information I can find on this is dated 2009.

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As a first step you're going to have to do a UK tax return, have you looked up the relevant website for this. After that you'll have to do an Irish tax return, there will be an offset for the UK tax and then maybe an extra Irish tax bill. Maybe as a start to get things going properly you should use an accountant with experience of both the UK and Irish system. As you mentioned NI, someone in the border area might guide you. I think McGibney, poster on here is in Donegal or Monaghan.

Thanks Bronte. I'll look up the UK Revenue website. Just struck me that i've been looking up the incorrect tax. Ive been looking up CGT but just realised that won't apply until we sell the house. No wonder I couldn't find what I was looking for! I suppose if I just search, tax on investment property rental, that should head me in the right direction.

Phoenix

There are many many posts on Irish rental tax on this website. Plus there are numerious key posts.

In addition you should look at the Irishlandlord website.

The accountant I mentioned earlier has some summaries also if I recall correctly.

In addtion here's what revenue state about having 'foreign' property rental income

http://www.revenue.ie/en/personal/b...reign-income-tax-paidliability-irish-tax.html

and somethere else on revenue.ie will be how to calculate tax, but personally I would consider an accountant a better bet.

We've been doing "furnished holiday lets" of a UK property for a few years, and have done UK tax returns to HMRC (although holiday letting is slightly different to long-term letting, as it is viewed as running a business).

You will probably need to register with the HMRC as "non-resident landlord". If they accept you, they give you permission to receive the rent without any deduction at source; otherwise, your tenant or agent should be paying 20% of the rent direct to HMRC (which is then allowed against your tax bill if any, or presumably reclaim if you had no tax liability)

HMRC has quite good information for non-resident landlords here:
http://www.hmrc.gov.uk/international/nr-landlords.htm

It's a tricky business, as we've found out, so I would agree with Brontë, on getting advice from a professional who knows both systems. There are some surprising differences between the UK and Irish tax systems -- and it's best to discover that sooner rather than later!