tax on rent from oversea property

[cumbie]

I have recently purchased an apt in cape verde from equity released from my property here. this will not be ready until end of 2007. when do i need to inform the revenue here for tax purposes? also i want to purchase a property in the UK to buy outright and use the rent i gain from this property to pay off against the mortgage on the apt in CV. how will i be taxed on these rentals and how much capital gains tax do i have to pay if i sell the properties?

 

[Rhino 1]

Hi Cumbie,
Are you going to rent in CV? - if not no need to inform revenue (i guess you are not as you are going to use UK income to pay it off).
Please tell me where you are buying in UK that will pay off 2 mortgages. By the way Irish tax is payable on all rents received - after allowable deductions.

 

[cumbie]

hi rhino - i won't have a mortgage to pay off for UK property as I will be buying the property outright. will only have council tax to pay and then tax on rent received. the money left after this will go towards paying off mortgage on CV until such time as this property is complete and can be rented. do you know how much tax i will have to pay on rents received?

 

[Guest111]

Hi Cumbie,
Are you going to rent in CV? - if not no need to inform revenue (i guess you are not as you are going to use UK income to pay it off).
Please tell me where you are buying in UK that will pay off 2 mortgages. By the way Irish tax is payable on all rents received - after allowable deductions.

This is not true...you are obliged to inform the revenue when you acquire an asset. In practice this will happen anyway when (or if!) you declare the income on your tax return. If you're just leaving the property idle strictly speaking there is no punishment for non-disclosure. But it will make their antennae start to twitch in your direction!