Declaring Rental Income on a Property Since 2004?

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Pia Bang

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My partner has a house, which he has had rented out since Jan 2004. He has never declared the income etc on it, but he wants to sort this out. The rental income was approx 520 a month bar a couple of months here and there when it was unoccupied. How does he go about delaring this income and paying any tax due?

He has already registered with the PRTB as a landlord and the property was under the stamp duty threshold for investors (purchased for 96k, think threshold for investors at the time was 127k) at the time he purchased it so I don't think there is any stamp duty due.

Also, last year he remortgaged the property from 80k approx to 130k (property value currently in the region of 180k). Would any interest relief be based on the original mortgage or the new mortgage?

Thanks in advance for any help.
Pia Bang
 
Pia Bang said:
My partner has a house, which he has had rented out since Jan 2004. He has never declared the income etc on it, but he wants to sort this out. The rental income was approx 520 a month bar a couple of months here and there when it was unoccupied. How does he go about delaring this income and paying any tax due?

He has already registered with the PRTB as a landlord and the property was under the stamp duty threshold for investors (purchased for 96k, think threshold for investors at the time was 127k) at the time he purchased it so I don't think there is any stamp duty due.

Also, last year he remortgaged the property from 80k approx to 130k (property value currently in the region of 180k). Would any interest relief be based on the original mortgage or the new mortgage?

Thanks in advance for any help.
Pia Bang
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Hi Pia Bang,

I would suggest seeking the assistance of an accountant. Is he receiving tax relief at source on this property? If so as a first time buyer or an investor? The whole portion of the interest on the mortgage can be offset against the rental income and other expenses such as repairs & maintenance, Esb, and Gas etc. He will have to file an Income tax return for 2004 and 2005 and could possibly be hit with interest and charges due to late filing. Good luck with anyway!

Jockey
 
Also, last year he remortgaged the property from 80k approx to 130k (property value currently in the region of 180k). Would any interest relief be based on the original mortgage or the new mortgage?
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Afaia, he can only claim the interest relief on the original mortgage unless the additional amount received in remortgaging is reinvested in the property.

See [broken link removed] for what is allowed.
 
Thanks for that asdfg, I will have a read through it, looks like there is a lot of info on there.

Jockey, I'm not sure if he is receiving trs on the property, I think he may have purchased as an owner occupier at the time but it definitely wasn't a first time buyer anyway. I will check about the trs with him.

Re: the remortgage, it was an equity release to purchase another property, so looks like it's the original mortgage amount we would have to go with there.

I think the ESB & other bills have been changed into the name of tenants as they move in and out (property is under a property management company as it's not nearby) so I assume he cannot claim that as an expense?
 
Hi.
An overseas friend inherited property and some significant savings from her deceased brother.
Can anybody tell if inheritance tax is applicable as normal, for this non-resident ? (outside EU)
Thanks
 
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