Where is your investment property located?

France
France
UK
UK
USA
USA
Spain
Spain
Ireland
Ireland


Filing Deadline

UK Tax Deadline January 31st


Applicable Taxes

Taxes on Disposal of U.K. Property

Capital Gains Tax

As an Irish resident individual, you are exempt from UK CGT should you dispose of your UK investment property – therefore you will only be liable to Irish CGT at 25% on the actual gain, this is payable in Ireland (subject to the usual Irish CGT rules).

UK Gift & Inheritance Tax

Non UK residents are not liable to UK CAT – therefore as an Irish resident individual only Irish CAT at 25% on the actual gain is payable in Ireland – this is subject to usual Irish thresholds i.e. if the gift/inheritance is below a certain amount no tax will be payable.

Local Property Taxes

Council Tax

Council Tax is a property based tax. Liability to pay council tax will, in the main, fall on individuals residing in the dwelling in question.

Where tenants and landlord live in the same chargeable dwelling the liability falls on the landlord. Where two or more residents are both chargeable by virtue of having a similar interest in the property, each is jointly and severally liable.

Spouses living in the same dwelling are also jointly and severally liable, irrespective of whether they have the same interest. If the dwelling is empty, the tax is paid by the owner. The tax is calculated on a daily basis.

Similar rules apply in Scotland but the tax is known as the Regional Council Tax, the Islands Council Tax or the District Council Tax, depending on which local authority imposes it.

There will be circumstances in which a landlord pays council tax on the property he or she lets, for example in respect of an empty property or a house in multiple occupation.

Generally where a property is used partly for domestic purposes and partly for non-domestic purposes, the different parts will be subject to council tax and business rates respectively, but there may be some situations where a mixed use property is only subject to council tax.

Filing Deadline

The tax year in the UK runs from 6 April to the following 5 April and the return is due by 31 January of the following year. The applicable return is the SA100 or short form SA200.

Example:
Tax year 6 April 2009 - 5 April 2010 the submission is due by 31 January 2011.

Penalties for Non Compliance

A standard fine of £100 per individual per return is levied on each late submission of a return where a liability is due. Where the return is not submitted within six months of the filing dates a further £100 is levied on each return.

Should returns remain outstanding for a number of years Inland Revenue can levy a fine of £60 for every day that the return is late. Penalties of up to 100% can be added to any tax that is due.


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