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Preliminary Tax October

  • 01-10-2016 05:19AM
    #1
    Registered Users, Registered Users 2 Posts: 432 ✭✭


    Hi all,

    I've just rented out my house in February this year, I am not ordinarily tax resident in Ireland and I am assuming that I shouldn't pay any preliminary tax this year.

    Next October I will have to pay the tax for this year and preliminary tax for the current year in October.

    Am I correct in my understanding of the tax rules when starting off Income tax.


Comments

  • Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    eire2009 wrote: »
    Hi all,

    I've just rented out my house in February this year, I am not ordinarily tax resident in Ireland and I am assuming that I shouldn't pay any preliminary tax this year.

    Next October I will have to pay the tax for this year and preliminary tax for the current year in October.

    Am I correct in my understanding of the tax rules when starting off Income tax.

    100% of nothing is nothing so Yes.

    http://www.revenue.ie/en/tax/it/leaflets/it10.html#section4


  • Registered Users, Registered Users 2 Posts: 432 ✭✭eire2009


    Thanks for the reply, I just wanted a second opinion. I already can't sell the house without paying a 12k Nppr Tax fine due to me considering it my ppr as I was in temporary accommodation abroad and hadn't rented the accommodation out.

    I can't see how a 200 euro tax becomes 12k over a year without them even notifying me of the balance. That's another story lol.


  • Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    Not sure how you get €200 becomes €12,000 in a year!

    As I understand it €200 per annum incurred penalties up to around €2,000.

    I'd be interested in how you became liable if you were temporarily abroad?

    What is a Non Principal Private Residence?
    Essentially, a non principal private residence is any dwelling which is not used by its owner as his or her sole or main residence.


  • Registered Users, Registered Users 2 Posts: 432 ✭✭eire2009


    I'm actually not sure how I got the figures myself I tried to sell the property last year but the fines, capital gains and transaction costs made it not worth while.

    I had considered it my ppr but legally it was a nppr due to me working abroad. So it was liable for the nppr and any capital gains and possibly inheritance tax lol.

    I researched it before but I think the figure is around 7k in fines after a Google search.


  • Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    So the NPPR is €7,000.

    Unless you were sent abroad by your employer then PPR won't apply.

    Not sure what the reference to Inheritane Tax is?


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  • Registered Users, Registered Users 2 Posts: 432 ✭✭eire2009


    You have to hold the property for 3+ years as your residence otherwise its liable for tax. I believe you can reside outside Ireland for this tho unlike capital gains tax. Not 100% don't really care it's not worth selling and they wonder why there's a housing shortage.


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