Can use UK property losses to reduce Irish Tax bill?

  • Thread starter smallinvest
  • Start date
S

smallinvest

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We have 2 apartments rented in Manchester and have made net losses for 3 years running. We also have small a number of Irish properties rented which breakeven or make a profit.

Is there a way to offset the UK property losses to reduce our overall Irish Tax bill?

Thanks
 

You should be able to offset. Do you complete a UK tax return on these UK properties? Are you resident in ROI or UK?
 
Yes, we file UK tax returns in the UK and a seperate one in Ireland for the Irish properties. We are resident in Republic of Ireland.
 
You will have to check if revenue consider UK property as Foreign property. If they do then unfortunately you cannot offset Foreign Property rental loss's against Irish Property rental gains.

There may be a special case due to our close/historical links with the UK
 
You can't use the UK property losses to reduce your taxable income on your Irish properties as they are treated separately - you will have to wait til you make a profit in the UK and offset it then.
 
webtax said:
You can't use the UK property losses to reduce your taxable income on your Irish properties as they are treated separately - you will have to wait til you make a profit in the UK and offset it then.
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Webtax, I think you are mistaken here unless I am reading your post incorrectly.

You cannot offset a foreign property rental profit against an Irish rental property loss and vice/vearsa.

Foreign Property rental income and Irish Property rental income are treated separatly(different cases of Income) by revenue. If you make a loss on your Foreign Property all you can do is carry that loss to the next year(and subsequent years) and offset it against any foreign property rental profit you may eventually have. The same applies to Irish property.

You can't offset foreign property profits against Irish Porperty loss's, just like you can'nt offset property rental loss's against your PAYE income
 
DonKing,

What if both ROI and UK peroperties are trading under an Irish limited company and the profits/losses of the UK portfolio is being expatriated to Ireland?
 
DonKing said:
Webtax, I think you are mistaken here unless I am reading your post incorrectly.

You cannot offset a foreign property rental profit against an Irish rental property loss and vice/vearsa.
Click to expand...

Hi DonKing,

I was saying the same thing as you, but not as clearly:
You can't use the UK property losses to reduce your taxable income on your Irish properties as they are treated separately - you will have to wait til you make a profit in the UK and offset it then [OFFSET YOUR UK LOSSES AGAINST UK PROFIT WHENEVER YOU MAKE ONE].
 
MichaelDes said:
DonKing,

What if both ROI and UK peroperties are trading under an Irish limited company and the profits/losses of the UK portfolio is being expatriated to Ireland?
Click to expand...

MichaelDes, I wouldn't know the tax situation for limited companies. Sorry
 
DonKing said:
MichaelDes, I wouldn't know the tax situation for limited companies. Sorry
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"Would any accountant or tax people have any advise using a limited company vehicle on this"? I would like to start to investigate the UK market, with a view on making a move in the next 12-18 months.
 
In general it doesn't make sense to use a limited company as a vehicle for property investments, except in relatively rare circumstances. If your sole motivation was to claim loss relief, this route would not make any sense.
 
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