Tax assistance from Westland Tax & Accountancy Ltd, Dublin, Ireland - Phone +353 (0) 86 8231823 for a no obligation meeting

Rental Property Tax Returns

(We also cater for UK Rental Returns)

Rental Property Owners are subject to the Self Assessment Tax Regime  and must file income tax returns by 31st October following the end of the Tax Year  - tax advice from tax agents Westland Tax & Accountancy Ltd., Dublin, Ireland


Obligation to file a return

In general any individual with Rental Income is a chargeable person for Income Tax purposes and subject to the same Self Assessment Regime as the Self Employed & Business Owners. You must file your Income tax Return by 31st October following the end of the year & pay the tax due together with the correct Preliminary Tax (Tax on Account for the current year.)

Calculation of Rental Profits

The tax due is calculated on your profits after expenses which include include: 75% of the Interest on a loan for the purchase improvement or repair of that property and most other expenses incurred for the property such as management charges, letting agent fees, rates, insurance including mortgages protection insurance, repairs & maintenance etc. Furniture, electrical equipment etc must be written off at the prevailing revenue rate.

Losses on a Rental Property

Losses may only be offset against profits from another Rental Property or if unused may be carried forward against future rental profits.

P.R.T.B Private Residential Tenancy Board

All landlords of Residential Property are required by law to register with the Private Residential Tenancies Board. You must be registered to qualify for the interest relief on an Investment Mortgage. Forms & Information are available at www.prtb.ie

Foreign property

In general if you own & rent property abroad you will be liable to tax abroad on the rent. You will also be liable to tax in Ireland with a credit for tax paid abroad. A separate Irish Tax computation must be prepared for the foreign rent. This means for example that the 75% interest restriction while it may not apply abroad, it will apply for Irish Tax purposes.

Spouses who own property together

If you own property together the income must be split and entered on the Tax Return of the assessable spouse accordingly. If one spouse is the main earner this can be to your advantage as there may be part of the 20% rate tax band unused by the low earner & therefore part of the Rental will be taxed at the 20% rate.

Accountancy fees

Accountancy fees charged for preparing your rental income tax Income tax Return are allowable as an expenses against your rental profits.

Other issues

There is and there has been over the years a large number of tax incentive schemes in relation to Rental Property. Some of these schemes will be finished by 2015. The use of allowances under these schemes may bring you within the high earners restriction legislation. Anybody availing of these allowances should always take professional advice.