C
corklad74
Guest
Hi,
My girlfriend who is scottish bought a one bedroom flat in Glasgow about 10 years ago for £28,500 (sterling). She has an interest only endowment mortgage. The flat is rented out (most of the time) and my girlfriend has been filling out UK tax returns each year and hasn't owed anything in tax thus far.
Together we bought a house in Dublin about 2 years ago which is now increased quite a bit in value. We are anxious to top up our Irish Mortgage by about 45000 euro and pay off the £28500 on the flat. The interest rate she is currently paying is 6.5% and together with management fees erodes any real profit from the rental income. I have a couple of concerns which somebody might be able to help me with.
Thanks in advnace
My girlfriend who is scottish bought a one bedroom flat in Glasgow about 10 years ago for £28,500 (sterling). She has an interest only endowment mortgage. The flat is rented out (most of the time) and my girlfriend has been filling out UK tax returns each year and hasn't owed anything in tax thus far.
Together we bought a house in Dublin about 2 years ago which is now increased quite a bit in value. We are anxious to top up our Irish Mortgage by about 45000 euro and pay off the £28500 on the flat. The interest rate she is currently paying is 6.5% and together with management fees erodes any real profit from the rental income. I have a couple of concerns which somebody might be able to help me with.
- If we continue in the present arrangement does my girlfriend have to make some declarations to the Irish revenue regarding the flat in Glasgow. She has been resident and working here for 3 years now.
- If we pay off the mortgage in Glasgow what are our tax implications in Ireland and the UK. I presume we would not get hit in both jurisdictions or maybe we would. Can we right off the mortgage interest on the 45000 against the rental income for Irish tax.
- If we were to sell what capital gains would we have to pay UK or Irish. Surely not both!!
Thanks in advnace