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Tax on Rental Income

  • 26-05-2016 11:55am
    #1
    Jonny303
    Registered Users, Registered Users 2 Posts: 634 ✭✭✭


    Hi,

    I have recently closed my business and now looking to do something else with premises. I have two options and two questions to go with it.

    Rent out the Premises
    I have been advised that any income (subject to expenses) will be subject to an upfront tax of 25%, even though it is in a Ltd company. Is this correct?
    Am I subject to the 25% and then corporation tax afterwards?

    Rent out Storage Units
    Run it as a business as separate storage units on a month to month basis. If the above is correct, would this mean that these units would be subject to the same tax principals, or just normal tax?

    Thanks for any input

    Jonathan


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    Jonny303 wrote: »
    Hi,

    I have recently closed my business and now looking to do something else with premises. I have two options and two questions to go with it.

    Rent out the Premises
    I have been advised that any income (subject to expenses) will be subject to an upfront tax of 25%, even though it is in a Ltd company. Is this correct?
    Am I subject to the 25% and then corporation tax afterwards?

    The rent of property is subject to Corporation Tax at 25%. It is also subject to an effective 15% close company surcharge. Overall CT is 40%.

    The operation of a storage facility is probably a trade so taxed at 12.50%.


  • #3
    Jonny303
    Registered Users, Registered Users 2 Posts: 634 ✭✭✭Jonny303


    That is great, thanks for the info.

    Worth looking further into so!


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