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Paying tax on rent

(7 Posts)
icanteven Sun 05-Mar-17 18:29:42

I have a question about tax and rent.

A retired relation is in a high tax bracket. H wants to move country (Ireland to UK), maybe long term maybe short term -nothing is set in stone yet - without selling his home in Ireland.

In theory £1000 in rental income (imaginary figures) would equal £1000 to spend on rent in new country (where cost of living is similar, so a similar home), but of course when you take tax into it, he stands to "lose" nearly half of his rent in tax, leaving him with under £600 to find a home in new country.

Is there a way around this? A way to even it out? Obviously it's not the tax man's concern what you choose up do with your income, but is there any legal way of evening it out a little? He is 100% against fudging or misrepresenting anything in his tax return. He can choose to pay tax in either country.

JoandMax Sun 05-Mar-17 18:34:26

If he's retired where does his income for higher rate come from?

We live out of the U.K. and when we rented our property out for £1,200 we didn't need to pay any tax as by the time deductions were included we were within the limit for no tax

LIZS Sun 05-Mar-17 18:37:13

If the rental property is in Ireland it would be subject to Irish income tax first.

JoJoSM2 Sun 05-Mar-17 18:48:21

Don't have a clue about the I Irish system but if both the pension and the rental income came from Ireland then they would be taxed accordingly based on their total income from both sources (at least that's how it works everywhere I know). How about a house swap? Might that be an option?

CatsDogsandDC Sun 05-Mar-17 19:59:18

He needs to ask an accountant. He can set meeting costs, depreciation etc against the tax, but yes it is likely he will still lose some rent to tax.

CatsDogsandDC Sun 05-Mar-17 19:59:35

letting not meeting!

Ferrisday Sun 05-Mar-17 20:03:39

Depends what other income he has to put him in the high tax bracket ?

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