Property in N.Ireland

DerryRed

I was born in N.Ireland and moved to the Republic in 1999, when I was 23. In 2001 my parents sold their house for approx £30,000. I bought a new house for £60,000 to which they contributed the £30,000 from the sale of their previous house. The remaining £30,000 is being paid up over a 25 year period, which will end in 2026.

The mortgage is in my name and I have a bank account in N.Ireland where the monthly payments and insurances are paid from. The monthly mortgage is approx £150. I pay approx £30 each month into the N.Ireland account from my Republic, my parents pay £100 and my sister pays £30. These payments are to cover the cost of the mortgage and insurance. Any surplus money is used towards the maintenance and upkeep of the house as and when needed.

The agreement is that when my parents die, the house will be sold and the money split between myself and my sister.

I have settled my tax affairs up to 2014 via PAYE. Since then my wife become self employed as a childminder and we have done a basic self assessment on our joint incomes. At no point have I ever declared any details about the house in N.Ireland, or the bank account mentioned above.

In light of the recent letter sent out by Revenue regarding the change in the code of practice, I'm now starting to think I should have declared this information.

Based on the information I shared above, do I need to make a voluntary disclosure to Revenue, and does it look like I will owe Revenue a significant amount?

Thanks for any advice on this.

scheister

DerryRed wrote: »

I was born in N.Ireland and moved to the Republic in 1999, when I was 23. In 2001 my parents sold their house for approx £30,000. I bought a new house for £60,000 to which they contributed the £30,000 from the sale of their previous house. The remaining £30,000 is being paid up over a 25 year period, which will end in 2026.

The mortgage is in my name and I have a bank account in N.Ireland where the monthly payments and insurances are paid from. The monthly mortgage is approx £150. I pay approx £30 each month into the N.Ireland account from my Republic, my parents pay £100 and my sister pays £30. These payments are to cover the cost of the mortgage and insurance. Any surplus money is used towards the maintenance and upkeep of the house as and when needed.

The agreement is that when my parents die, the house will be sold and the money split between myself and my sister.

I have settled my tax affairs up to 2014 via PAYE. Since then my wife become self employed as a childminder and we have done a basic self assessment on our joint incomes. At no point have I ever declared any details about the house in N.Ireland, or the bank account mentioned above.

In light of the recent letter sent out by Revenue regarding the change in the code of practice, I'm now starting to think I should have declared this information.

Based on the information I shared above, do I need to make a voluntary disclosure to Revenue, and does it look like I will owe Revenue a significant amount?

Thanks for any advice on this.

at the moment who's name is on the deed to the house

Mrs OBumble

Who is living in the house now? (You're not clear if its your parents or not).

What rent are they paying?

DerryRed

scheister wrote: »

at the moment who's name is on the deed to the house

My name is on the deeds of the house

DerryRed

Mrs OBumble wrote: »

Who is living in the house now? (You're not clear if its your parents or not).

What rent are they paying?

My parents are still living in the house

There is a N.Ireland based bank account in my name. I pay £30 a month into this, my sister pays in £30 a month and my parents pay in £100 a month. This goes towards payment of the mortgage and insurance. Any surplus is used to do maintenance on the house.

We have been operating in this manner since the house was bought in 2001.

ThumbTaxed

Hardly going to be an issue. . Rent would barely cover costs, wear and tear etc at 120 per month?

DerryRed

ThumbTaxed wrote: »

Hardly going to be an issue. . Rent would barely cover costs, wear and tear etc at 120 per month?

Money put into the account each month is a little bit extra than the monthly mortgage payments. We let this build up and use it to get work done in the house e.g. painting, new carpets.

DerryRed

Still not clear following all the posts above whether I need to declare the property in N.Ireland. Any advice is most welcome.

davindub

If you want certainty you need to consult a tax advisor.

If you handle it correctly there could be very low tax liability now and in the future. Handle it in correctly and you could pay tax on the 30k gift from your parents (purchase price), income tax on the payments made by your parents/ siblings and CGT on the increase in value (if any) when you sell the house.

I am unaware of any requirement to register foreign property ownership rather than income earned.

km991148

ye - I am curious about that letter as well. I know someone who bought a house in NI with money (Savings and a loan) from ROI.
The house is not rented and there is no other NI/UK income. Revenue were never informed - is this something that would be declared? Would there be any circumstance that it would need to be?