Dáil Éireann Debate, Tuesday - 1 May 2018
96. Deputy Tom Neville asked the Minister for Finance his views on a double taxation anomaly whereby a UK resident pays tax on the income from a property in Ireland in both jurisdictions; and if he will make a statement on the matter. [19021/18]
Amharc ar fhreagraI am advised by Revenue that section 18 Taxes Consolidation Act 1997 provides that an individual who is not resident and not ordinarily resident in Ireland, is in general, liable to Irish tax only on income arising in Ireland. Rent arising from a property situated in Ireland is considered Irish source income and is therefore within the charge to Irish income tax notwithstanding that the individual is tax resident in the UK.
Relief for double taxation is provided for under the terms of the Ireland/UK Double Taxation Agreement. Article 7 of this agreement grants taxing rights to Ireland in respect of income from immovable property. Therefore, under the terms of this agreement, Ireland may tax this income notwithstanding that it is also taxed in the UK.
In general, the country in which an individual is considered a resident of for the purposes of the Ireland/UK treaty will grant relief for any element of double taxation. On the basis that the individual is a resident of the UK, the question of relief for Irish tax paid is a matter for the UK tax authorities. Any credit for Irish tax which is allowed in the UK cannot exceed the UK tax due on that same income.
