Help with a tax query (married persons allowance)

P

pmcgrath

Guest
Hi all,
While ive often referred to the site for advice this is my first post.
Basically my query is in relation to my PAYE tax credits and the married persons allowances for same.
I am a PAYE worker paying the higher rate of tax. My wife is a self employed company director and she pays her taxes through the business. We recently re-mortgaged to buy a foreign property and I am now wondering what is the best way to set our tax affairs? Can I claim her tax credits? Should I notify the revenue that we are now married? We never bothered and its now 18 months. Is there any benefit to us in doing so?
Also and I guess I should post this is the other forum, but our property is in Portugal. Can I claim tax back on the expenditure to furnish and kit out this apartment if it is being rented out, as I would if it were an investment property in Ireland?
Any advice is very welcome..
Regards and thanks,

 
At the end of the day it won't make much difference who gets the credits. Persumably you will be jointly assessed. All income goes into the calcualtion and all credits and taxes paid are used in the calc.

Regarding your property in Portugal as far as i'm aware you can claim a capital allowance on the fixtures bought for the property but i am open to correction on this
 
You cannot transfer tax credits between spouses, only tax bands; and seeing as both of you are paying tax at the higher band (above €32k), then you will be no better off being jointly assessed versus staying assessed as singles.

regarding the tax relief on furnishing property, this applies to the tax you would pay in Portugal, and as long as you pay the tax there, you fall under the double-taxation law, and are not liable to be taxed again here in IRL.
 
With regard to the tax on your overseas property - as you are resident in Ireland (and I assume domiciled here) you have to declare your overseas income and deductions under Irish tax rules in Ireland (on your tax return), and then claim credit for foreign tax paid. This means in effect that you will pay tax at the higher of the tax rates in overseas country or Ireland.
 
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