Tax liability on UK income

[Martin Corrigan]

Hi,

My wife, a UK national presently living over there, plans to draw a British civil service pension to which she will be entitled from next year. She then plans to rent her house out and move over here. Since we have no idea how the whole Brexit shambles will eventually turn out, we need some information on how things stand presently. If things change, we'll have to deal with it next year. My questions are:

1 - Will her civil service pension draw any tax liability over here?
2 - Will her income from her house draw any tax liability over here?
3 - If the answer to 1 and/or 2 is 'yes', who should we see to make the proper arrangements for payment? Will any financial advisor do, or are there specialists who deal with this kind of thing?

 

[Ciru75]

1. No. It will only be taxable in the UK.
2. Yes. It will also be taxable in the UK AFIAK but double taxation relief will be available in Ireland.
3. Any tax agent should be able to deal with this.

 

[Martin Corrigan]

Thanks for answering. As I understand it, income from renting out her house in the UK is taxable at the higher rate of the two countries, ie, if the Irish rate is higher, she'll pay the UK rate to the UK treasury and the difference between the two rates to the Irish treasury, OR the entire tax to the UK treasury if their rate is higher. Is this correct?

 

[T McGibney]

Thanks for answering. As I understand it, income from renting out her house in the UK is taxable at the higher rate of the two countries, ie, if the Irish rate is higher, she'll pay the UK rate to the UK treasury and the difference between the two rates to the Irish treasury, OR the entire tax to the UK treasury if their rate is higher. Is this correct?

Pretty much so, at least until she's here long enough to establish Irish tax residence. Until she does, the Irish authorities have no call on her UK income.