Living in UK Letting in Ireland

Hi,


I'm moving to the UK for a year and will rent out my house in Ireland. Should the tenant with-hold the tax or should i make a tax return in Ireland (i'm Ordinarily Resident in Ireland)?

Does the tenant have to with-hold it? I think it would be easier for me to make a return in Ireland, that just seems less complicated.

Any advice?

Thanks
Conor

As a non-resident landlord, if you let directly to a tenant, the tenant will have to withhold basic rate tax from the rent due to you, and pay this over to the Revenue.

However, if you appoint an agent (could be friend or family), and they register for tax as an agent, they will collect the tax (gross for you) and pay this over to you directly, thus having no withholding tax. However, the Revenue usually reccommend that the agent withhold a certain amount if there is going to be a tax liability, as they will be liable to pay this!!

If you want any more information about this please PM me.

I'm going to do this for a family member who has let her apartment and is moving abroad - has anyone any experience of doing this? Would I need a tax consultant or is it reasonably do-able?
thanks

hi I rang the tax office to get some clarification on this. Briefly, the tenant doesn't have to with hold the tax unless they sign a form specifically saying that they will do this. You submit this to the tax man & then they are taxed so that the tax man gets his due.

The tenant can assume you have made other arrangements if they haven't signed the form.

If you get an agent to do it for you (a brother was the suggestion) they get a 2nd pps number with which to make the return against so it isn't counted against the agents own income.



Hope that helps.

The above advice from the Revenue is incorrect.

A tenant is responsible for withholding the tax at basic rate from any rental payments to an overseas landlord. If they do not do this the Revenu can chase them for any tax liability arising on the overseas landlord i he/shhe doesn't pay it.

It is in the tenant's interest to sort this out - and in the landlords if he wants to keep a tenant.

You can do this without an agent - but remember you need to complete your tax return to maximise all your claims, complete a set of rental accounts, and declare any other Irish sourced income e.g. bank interest, dividends etc.

I would reccommend a tax advisor to do this for you

But for tax purposes depending on how long you're over there, you may be classed as a UK resident....and taxed by the UK inland revenue....

Yes you may be taxable in the UK, bt you will receive a credit in respect of any Irish tax paid.