Taxation/Budget News
Tax Deadline for UK Property looming
By Aidan Clifford, ACCA’s Advisory Services Manager
Jan 19, 2010 - 10:50:14 AM

ACCA (Association of Chartered Certified Accountants) is warning Irish people who have UK property that their UK tax returns are due by the end of this month. 

Aidan Clifford, ACCA’s Advisory Services Manager, said  “A lot of Irish people invested in UK property over the past few years and will therefore have a UK tax return to file and pay by the end of this month.  Unlike Ireland, the UK tax year ends on 5 April each year and the tax return filing and payment deadline is the following 31 January.  While the fine for late payment of your tax in the UK is only £100, interest and penalties for non filing could be substantial.   There have also been changes to the “furnished Holiday Letting” rules in the UK and many of the benefits and tax shelter under this scheme have been reduced; Irish investors with such property need to budget for the additional taxation liability.”

Any Irish person with an overseas property, even when the property is not generating a rental income, needs to attend to the local taxation rules.  The deadline in the UK is 31 January 2010 for all rental income earned in the year to 5 April 2009.  Failure to file a return will leave the property owner liable to prosecution and will make the subsequent sale of the property much more difficult.  An Irish resident taxpayer will get credit for UK tax paid when paying the Irish tax on their UK rental income.  Irish taxpayers should also be aware that Ireland and the UK have similar names for the different types of tax, for example, rental income is taxed under Schedule D Case 5 under both jurisdictions, but other than the name of the tax, there are completely different rules for calculation of the amount of tax due. 

For further information, please contact:

Aidan Clifford, Advisory Services Manager, ACCA Ireland - 087 2470205