renting out after 6 yrs ownership + living in UK

M

maggot

Guest
The tax guys sent me over to you folks so ... here goes:

I'm a Dubliner but live and work in Belfast where I rent a place and am paid & taxed in UK. I have for a couple of years rented out my house in Dublin under the rent-a-room scheme since i was back and forth a bit.

Here's the problem. I have moved North now more permanently and need to up my rental income past the E650 rent-a-room limit to more going-rate rent since I am recently a low-earner. I want to switch to the full house rental as non-resident.

Issue now is - I heard you had to own your house for x years (maybe 5 ?) to NOT be liable for paying stamp duty of purchase price and I'm also worried about CGT or UK income tax implications. I bought the house jointly in July 1998 and solely in Mar '99. I think I'm considered officially as non-resident given that I don't pay tax in the south?

What's the best way for me to rent out the house to maximum given the tax implications?

Many thanks for any help on this!
 
owning property in Ireland living UK

There is a 2-year transition period (the jargon is 'resident but not ordinarily resident') There is a section in this on Oasis under personal taxation.
 
non-residency

thanks - do you mean 2 years of being back and forth before tax people see you as non-resident ?

and .. mmm ...where would I find Oasis ?

cheers
 
Re: non-residency

Hi maggot

I don't want to appear unhelpful, but you really should take professional advice on this one. The whole area of residency is very complicated and there are so many complex issues, that you could make a very expensive mistake if you rely on any advice given on AAM. It probably explains why no one has attempted to answer your question.

You have been getting the rent-a-room relief, but you have not been resident. I would guess that you would have to be resident to get the rent-a-room relief, but I simply don't know.

If you are not entitled to rent-a-room relief, then you may have unwittingly lost the stamp duty exemption. I am not trying to frighten you, but you need to check this out.

The most significant potential tax liability for you is Capital GAins Tax. If you are not planning to return to Ireland in the near future, you should look at selling your home now. The gains would probably be free of CGT as it was your principal private residence. But if you are resident in the UK, would the gains made on the sale of a property in Ireland be taxable? Again, I simply don't know.

You should talk to an accountant in Northern Ireland who can answer these questions for you from a UK point of view and who can check out the Irish system as well.

Brendan
 
UK resident renting out their Irish home?

Thanks for that brendan. Also Clubman - the input from yourself was very useful too.

CLUBMAN said: "Where a property originally purchased as an owner occupier is rented out within five years of purchase (other than under the rent a room scheme where this legitimately applies) then a clawback of stamp duty applies.

If I was you I'd get professional advice on my tax/residency situation and the legitimacy or otherwise of having availaed of the rent a room scheme to date. "

seems I need to seek professional advice -- SO as far as AAM goes - unless someone has dealt with a Uk tax-payer renting their home after 5 years ownership - that's all folks.

Cheers - Maggot.
 
property taxation implications when moving abroad

The link for information on categories of residence is

www.revenue.ie.
Go to Individuals and Taxation (or something like it) on the lefthand menue and there is a further menue 'Going to Work Abroad'.

As Brendan Burgess pointed out in his post these matters are usually complex and responses here or general information on government websites cannot substitute for professional advice on your specific individual circumstances.

I hope it goes well and you find the online document useful!
 
Re: property taxation implications when moving abroad

I presume that [broken link removed] is the link that Marie means?
 
You must log in or register to reply here.
Back
Top