Taxation on Rental after I move to England

oxygen · 10-01-2014 06:43PM #1

Hi

I was offered a job in London I am considering. RE paying tax on my house that I will be renting out, it seems fairly straight forward (I still come in well under the mortgage payment

) but I want to make sure I have it right.

Basically I still need to complete a tax return every year, but it will be based on my English earnings, and the tax rate they are subject to. I think there isnt a huge difference in English and Irish tax rates.

The tenant is required to pay %20 of the rent to the revenue refundable to me on completion of my tax returns, but thats really their responsibility.

I got the following information from

http://www.fenero.ie/about-fenero/our-blog/2013/07/07/first-time-landlords-what-you-need-to-know-before-renting-out-your-home/

If you are a landlord living abroad, your tenant is legally required to withhold 20% of the rent and pay this over to Revenue. You obtain this 20% back from Revenue on submission of your annual income tax return. The 20% is first used to settle any tax bill that you may have and the balance is then refunded to you.

Thanks in advance

Geuze · 11-01-2014 01:36AM

Read info direct from the source:

http://www.revenue.ie/en/tax/it/rental-income.html

Geuze · 11-01-2014 01:38AM

oxygen_temp wrote: »

Hi

I was offered a job in London I am considering. RE paying tax on my house that I will be renting out, it seems fairly straight forward (I still come in well under the mortgage payment ) but I want to make sure I have it right.

Note that the mortgage repayment is not relevant.

It's the mortgage interest payment that is relevant.

Mr. Incognito · 11-01-2014 09:45AM

You will have liability to Irish source income which is the rental income. You will have to file and Irish tax return to take account of this.

You will still be Irish resident in the first year you leave most likely under the 280 look back rule. You should consider applying S 822 split year to counter this to avoid Irish income tax on your UK source employment income for the first year (its in the guide in the stickies). You may have a liability in the UK for the Irish source income. Double taxation treaties can be used to ensure that you are not taxed on the same income twice in each jurisdiction.

In short, you will need someone that knows what they are doing to complete a tax return for you.

oxygen · 11-01-2014 04:47PM

Mr. Incognito wrote: »

You will have liability to Irish source income which is the rental income. You will have to file and Irish tax return to take account of this.

You will still be Irish resident in the first year you leave most likely under the 280 look back rule. You should consider applying S 822 split year to counter this to avoid Irish income tax on your UK source employment income for the first year (its in the guide in the stickies). You may have a liability in the UK for the Irish source income. Double taxation treaties can be used to ensure that you are not taxed on the same income twice in each jurisdiction.

In short, you will need someone that knows what they are doing to complete a tax return for you.

Thanks, yea I haven't a clue, will need to book an appointment with a tax adviser.

Taxation on Rental after I move to England

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