Buying an overseas holiday home

[edharte@hotmail.com]

I am considering buying a holiday home in the Rep of Ireland, which will probably generate some rental income from family/friends at times when I am not using it.

Will the income and any gains on disposal be taxed in the same way as if the holiday home was in the UK ?

Could I be liable to taxation in both countries?

Any general advice on my potential tax position would be useful.

[Ian McTernan CTA]

You will be liable to tax on the rental income in Ireland, less the allowable proportion of expenses. You may suffer tax deduction at source on the rental income. You may be liable to Irish capital gains tax on disposal.

You will effectively be charged to tax in both countries, although you can deduct Irish tax suffered against any UK liability.

I can put you in touch with an Irish firm who can handle the form filling for Irish tax purposes.

More information can be found on the Irish Revenue website at www.revenue.ie.

Ian McTernan CTA
Chartered Tax Adviser
McTernan Associates Ltd
ian@imcternan.com