Paying tax on rental property owned by beneficiaries

[fender]

I am about to LET a house that belongs to three beneficiaries. My husband is the executor and the grant of probate has been issued.

Do I have to set up an account and take all of the income and subtract allowable expenses and then distribute the 'profit' annually to each beneficiary who must pay their own income tax on it?

One of the beneficiaries lives in Australia - where does she pay her tax?

I thought I could set up a separate executor PPS number and pay tax that way but as the grant of probate has been issued it seems I can't do this.

Thanks in advance.

 

[Gervan]

I think you'll have to register a partnership, as the "estate of the deceased" no longer applies. The partnership will get its own PPS number.
The Australian partner will pay Irish tax as her income from Irish property is taxable here. She probably has to declare this in Australia but will get some sort of credit or exemption for tax paid here.

 

[T McGibney]

The Australian partner will pay Irish tax as her income from Irish property is taxable here. She probably has to declare this in Australia but will get some sort of credit or exemption for tax paid here.

She will also have to register with Revenue as a non-resident landlord and either appoint a 'collection agent' for tax purposes or suffer 20% deduction of tax on her portion of the rent received from the tenant.

 

[fender]

OK thanks - so I set up a partnership with its own bank account.

Does the tax return happen as a single unit using the partnership PPS number and what rate of tax gets paid?

 

[hastalavista]

the problem with a partnership is the issue of liability if something goes pear shaped so at the very least you need plenty Public Liability cover and be sure when filling out the house ins form that u make clear it is rented.
Also I have a feeling that the partnership is liable for the tax and if not paid then all 3 can be pursued.

In addition you should incorporate some mechanism for disposing of the house in the event that one of the 3 wants out, this is important in the event of the demise or incapacitation of one of the 3