Rental Income - abroad

S

Siobhan

Registered User
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6
Hi there
I used to live in the UK. I am in receipt of rental income from non-SEPA country and it's paid into my UK bank account. I just use my bank card to take out cash every month here. Is this taxable income as in theory it never goes to Ireland?
 
Siobhan said:
Hi there
I used to live in the UK. I am in receipt of rental income from non-SEPA country and it's paid into my UK bank account. I just use my bank card to take out cash every month here. Is this taxable income as in theory it never goes to Ireland?
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Where do you live?

If you are Irish resident then you're taxable here on your worldwide income.

If you've already paid tax in another jurisdiction on the rental income then you'll be entitled either to relief under a Double Taxation Agreement (depending on the country) or to a credit for the foreign tax paid.
 
Living in Ireland again as a PAYE worker. Never paid tax on the income abroad. It's a Polish property. Didn't pay tax there as never lived there, just own the property.
 
Siobhan said:
Hi there
I used to live in the UK. I am in receipt of rental income from non-SEPA country and it's paid into my UK bank account. I just use my bank card to take out cash every month here. Is this taxable income as in theory it never goes to Ireland?
Click to expand...

FYI: revenue get data on such cards if used in Irish ATMs because it was quite a common tax dodge to bring shed loads of mule abroad, lodge to foreign bank account and just use the cards from here.

If you are maintaining your uk address on UK bank fine but if not, the revenue get another tape.......
Re the property, the rental income may not be liable to tax depending on how its financed.
When you make your PAYE return what answer to you give for foreign property ownership/ and if rented: other income?

I would give it some thought as if you file a false tax return and they catch up with you, the gloves will be off.
 
I have never made a PAYE tax return.. they tax me at source. Yeah it's a UK bank account on UK address. I take out the money once a month. I inherited the house, it's mortgage paid etc.
 
Thanks, so the rental income is taxable here, less any admin costs and W&T etc, plenty on Revenue website re whats allowable.
Gain on disposal also taxable here.
I preume u wer in uk when u inherited it so wouldn't have required a return then
However I thing it will eat into your CAT threshold allowances as they are lifetime

For what is worth, its all self assessment here now so the obligation is on you to make the returns.

How long have you been back, ie calendar years = tax years
 
Thanks all. One last question. If I just let the money build up in the UK etc and don't touch it, do I need to pay tax on it?

edit - back just over a year. Didn't realise that business about self assessment.... will have to look that up.
 
Hi, my father was Polish-American, I am Irish born and bred - went to college and lived in UK but back here permanently, work as civil servant
 
Spot on Jon...that's exactly what I was getting at. The OP's above reply re "permanently" isn't helpful, but it is possible that she is a non-dom and therefore subject to the remittance basis in relation to foreign income.

OP, were your parents married when you were born?
 
Is the rental not subject to tax in the country where the property is? Which will be deductable presumable under the normal double taxation agreements and then has to be declared to Irish revenue.

The best advice to the OP is to get this sorted now by paying a professional, otherwise we will be hearing from them in 10 years time when they will discover they have a massive tax bill that will have made the 'dodging' a total waste of time, stress and money.
 
Bronte said:
Is the rental not subject to tax in the country where the property is? Which will be deductable presumable under the normal double taxation agreements and then has to be declared to Irish revenue.

The best advice to the OP is to get this sorted now by paying a professional, otherwise we will be hearing from them in 10 years time when they will discover they have a massive tax bill that will have made the 'dodging' a total waste of time, stress and money.
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The tax hasn't been paid abroad though, so no credit for it. If the remittance basis applies, Irish problem solved. I'd also be shocked if Polish rates aren't lower.

Professional advice the best way forward though.
 
My parents were married, grew up in Ireland, Dad inherited Polish property which is now mine (as my parents divorced) and I guess I never thought about tax liability til someone recently mentioned rental income. I thought if the money didn't come into Ireland it wouldn't be liable.... so you're saying even if it travels from Poland to UK and I leave it build up there it's Irish taxed anyway?!

PS thanks for the replies guys. I will have to get an accountant I guess. it's only worth about 500 quid a month so it never struck me as something to be taxed as I have always been taxed at source.
 
Hi Siobhan,

you said you withdraw the money from an atm "here". Please clarify where "here" is, if it is in Ireland then that is remitting the money. If not, then whether you are liable to Irish tax on it may depend on your domicile.
 
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