Preliminary Tax October

eire2009 · 01-10-2016 05:19AM #1

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.

Lockedout2 · 01-10-2016 09:20AM

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

eire2009 · 01-10-2016 09:36AM

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.

Lockedout2 · 01-10-2016 09:50AM

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.

eire2009 · 01-10-2016 10:15AM

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.

Lockedout2 · 01-10-2016 10:23AM

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?

eire2009 · 01-10-2016 03:59PM

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.

Preliminary Tax October

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