Non-resident & want to rent

M

maggot

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Non-resident & want to rent

I'm a Dubliner but live and work in Belfast where I rent and am paid & taxed. I rent out my house in Dublin under the rent-a-room scheme. It's low rent so I don't have to pay tax.

Here's the problem. I now need to up my rental income. I work for a Belfast charity and need to up my income. I'm worried about CGT. I bought the house jointly in July 1998 and solely in Mar '99. I think I'm considered officially as non-resident given that I don't pay tax in the south?

What's the best way for me to rent out the house given the tax implications?

Many thanks for any help on this!
 
CGT doesn't apply unless you sell the house (and it's not your primary residence), but renting your house makes you liable to income tax. Whether it's payable in the Republic or the UK would be an issue for you. I suggest that you mosey on over to the property investment section of AAM and ask for advice there -- that's where all the landlords hang out!
 
I'm a Dubliner but live and work in Belfast where I rent and am paid & taxed. I rent out my house in Dublin under the rent-a-room scheme.
Click to expand...
As far as I know, you can't avail of the rent-a-room scheme unless you actually live in the property in question.
 
able to rent out and avoid stamp duty?

yeah rainyday you are right (must be able to live/living there part-time) - but rent-a-room worked ok in my past situation - it no longer does now - which is a reason I want to switch to the full house rental as non-resident.

Issue now is - I heard you had to own your house for x years (maybe 5?) to NOT be liable for paying stamp duty of purchase price (since revenue is penalising those who bought as investment- I originally bought it as primary residency) - If I had to pay stamp duty now it'd cripple me.
But then there's still the income tax question -- I am not a high-earner in the North ....no idea how that works.

First reply had suggested the property section of AAM as best place for this question so I'll try there too.
 
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