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Non dom and remittance

  • 14-12-2020 8:41pm
    #1
    mjen1970
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hi All,

    Can someone help me with this question as I have looked all over and cannot find and answer.

    If an individual is Irish Resident but UK domiciled and all their Irish sourced income is PAYE and taxed (lets say 40,000 euros). Do they need to declare UK rental income on a tax return if none of the income is remitted to Ireland?

    Thanks,


Comments

  • #2
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,628 ✭✭✭✭Marcusm


    Section 73 TCA 1997 charges U.K. income to Irish income tax in respect of a resident non-domiciled individual irrespective of whether it is remitted to Ireland. You have no choice but to declare it! If the rent arose anywhere else in the world, the remittance basis would be available but the U.K. is special!


  • #3
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    Marcusm wrote: »
    Section 73 TCA 1997 charges U.K. income to Irish income tax in respect of a resident non-domiciled individual irrespective of whether it is remitted to Ireland. You have no choice but to declare it! If the rent arose anywhere else in the world, the remittance basis would be available but the U.K. is special!

    The Revenue Commissioners don't agree with you. This is what they say:

    "3.2.Section 18 FA 2008 – UK source income

    "Up to 1 January 2008, the remittance basis of assessment did not, by virtue of section 73 TCA 1997, apply in respect of income arising from UK source securities and possessions.By virtue of section 18 of Finance Act 2008, section 73 TCA 1997 ceased to have effect so that, with effect from 1 January 2008, the remittance basis may apply to UK source income arising on or after that date to individuals who are non-domiciled in the State. However, this is subject to Paragraph 3.1 in respect of foreign employment income chargeable to tax under Schedule E."


    Source:

    https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-21a.pdf


  • #4
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,628 ✭✭✭✭Marcusm


    nompere wrote: »
    The Revenue Commissioners don't agree with you. This is what they say:

    "3.2.Section 18 FA 2008 – UK source income

    "Up to 1 January 2008, the remittance basis of assessment did not, by virtue of section 73 TCA 1997, apply in respect of income arising from UK source securities and possessions.By virtue of section 18 of Finance Act 2008, section 73 TCA 1997 ceased to have effect so that, with effect from 1 January 2008, the remittance basis may apply to UK source income arising on or after that date to individuals who are non-domiciled in the State. However, this is subject to Paragraph 3.1 in respect of foreign employment income chargeable to tax under Schedule E."


    Source:

    https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-21a.pdf

    Indeed you are right; I missed sub (4) of section 73 which was inserted while I was on a 20 year period of non-residence. Apologies!


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