Private Rental Tenancies Board

D

deepdropoff

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Hopefully someone here can help. I own a second property which is rented out and has a substantial mortgage. I have done my own tax returns for the last few years as I thought it was fairly straightforward. The Revenue Commissioners queried an entry on my 2009 return and I managed to explain to them that there was nothing untoward.

The have now sent a revised noice of assessment for the previous year with a very balance payable saying that as I was not registered with PRTB that I cannot claim the interest against the income. This was a genuine error. I didn't realise I needed to do it. My NPPR is fully up to date etc. Does anyone know if there is anyway of either back dating the PRTB membership and if not do the Revenue have any compassion for such errors? I'm having enough trouble paying the loan interest. I have no way of paying the revenue what they are claiming without going into default on the morgage. Someone please help.

I can't believe I've found myself in this situation because of an oversight.
Many thanks.
 
Hi

I believe you can back date the registration with the PRTB provided that the tenancy has not ceased int he mean time. It can be done online.

Kind Regards


capnhand
 
Hi Kennyb3

Revenues ruling on the subject is thus

[4.8.10] Registration of tenancies with Private Residential Tenancies Board (interest deduction) This instruction is based on articles published in Tax Briefing issues 63 (May 2006) and 65 (December 2006)

Then par 4.1 states

4.1 Late Registration
While new tenancies should be registered within 1 month of their
commencement, provision is also made in the Act for late registration
at double the normal registration fee. An acknowledgement from the
PRTB confirming registration in the case of a late registration will be
accepted by Revenue as evidence that a chargeable person has
complied with part 7 of the Act. However, a chargeable person
claiming an interest deduction in his or her return must be in a position
to indicate compliance with the Part 7 requirements at the time of
making the return.

Interest relief that has been denied for a particular chargeable period
because a tenancy was not registered by the return filing date for that
period can subsequently be restored if the landlord avails of the late
registration facility, subject to the usual 4 year time limit on claims for
repayment of tax.
So my reading of this is that you can indeed back date it and the interest deduction will be reinstated. Revenue dont appear to be that interested in disallowing mortgage interest generally. They are much more interested in using the PRTB to find those people who are not declaring the rental income at all by communicating with the PRTB and also the Department of Social Protection where the tennents are claiming rent allowance.

capnhand
 

capnhand said:
Interest relief that has been denied for a particular chargeable period
because a tenancy was not registered by the return filing date for that
period can subsequently be restored if the landlord avails of the late
registration facility, subject to the usual 4 year time limit on claims for
repayment of tax.

So my reading of this is that you can indeed back date it and the interest deduction will be reinstated. Revenue dont appear to be that interested in disallowing mortgage interest generally. They are much more interested in using the PRTB to find those people who are not declaring the rental income at all by communicating with the PRTB and also the Department of Social Protection where the tennents are claiming rent allowance.

capnhand
Click to expand...



So OP, you absolutely can and should register the tenancy late, and upon forwarding your letter from the PRTB to Revenue to confirm that the registration requirements have now been met for the year in question, your relief for the interest deduction will then be restored.

(EDIT: Capnhand has beaten me to it! :D )
 
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