Taxation of rental income in Ireland and HMRC issue

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PuffAdder

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Hi there,

I am resident in the UK with a house in Dublin that I have let since I moved here in 2012.
My accountant is my tax agent and has been filing returns on the rental income and advised as it was Irish sourced and declared it was not subject to UK tax. I have tax relief on rollover from previous losses and there is no tax payable on the income in Ireland up to present day.

Now a letter has arrived from HMRC stating they see I have offshore rental income for the tax year 2014.My accountant says its not declarable but I have just looked on their website and it states all worldwide income need to be returned in the UK and tax paid.
If this is the case how should I proceed and will the fact there is no tax due in Ireland carry across to the UK.

Regards,
PuffAdder.
 
How did you have previous loss to carry forward? If you had no tax liability in Ireland then I would expect you declare the income to HMRC and advise them of your losses and the account for same under the double taxation agreement between Ireland and UK.
 
it is not necessarily the case that being non-liable to tax in Ireland automatically means not liable in the UK but the devil is in the detail and in this case, the detail is in the double-taxation treaty between Ireland and the UK. Enjoy the read!
 
Hi guys, its a section 50 that's been used to offset the rental income as opposed to a loss really. Up to ninety now...…………..
 
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