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Where Taxpayers and Advisers Meet

Irish property tax in UK

mindyb
Posts: 2
Joined: Tue Jan 09, 2018 3:09 pm

Irish property tax in UK

Postby mindyb » Tue Jan 09, 2018 3:15 pm

Hi. I'm Irish, living in London and paying PAYE. I have a property in Dublin that I rent, I make a small profit and pay tax on this by filing Irish tax returns. I have just got a letter from HMRC saying I have not paid tax on my overseas income.
Do I also owe tax on this property in the UK? will i be required to back date this? thanks

GlobalTaxAdviser
Posts: 626
Joined: Fri Dec 05, 2014 1:18 am

Re: Irish property tax in UK

Postby GlobalTaxAdviser » Wed Jan 10, 2018 12:09 am

Hi

This is only a recent development where HMRC received automatically information from 45 other tax authorities around the world. Though I would have thought with due respect they would have gone after bigger fish first.

Normally remittance basis would apply on foreign income but ITTOIA05/S269 that this would not apply for foreign income arising in Republic of Ireland. You would pay double tax then claim a tax credit presumably in Ireland depending on the tax treaty.

Yes you should backdate and make a full disclosure.

Kind Regards

GTA

mindyb
Posts: 2
Joined: Tue Jan 09, 2018 3:09 pm

Re: Irish property tax in UK

Postby mindyb » Thu Jan 11, 2018 11:36 pm

Thank you for this information.
What much additional tax am I required to pay?
As I have already made Irish submissions, can I not claim relief in the UK now?

GlobalTaxAdviser
Posts: 626
Joined: Fri Dec 05, 2014 1:18 am

Re: Irish property tax in UK

Postby GlobalTaxAdviser » Fri Jan 12, 2018 12:06 pm

There are few issues to deal with:

1) Different Tax Years
2) Exchange Rates
3) Method of Calculation of Profits

Its difficult to tell how much additional tax on the profits maybe 20, 40 or 45%

You may need to amend your Irish tax return to take account of the tax credit

Kind Regards

GTA


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