The Non Principal Private Residence (NNPR) charge in 2009 and the Household Chargein 2011, were eventually replaced by the Local Property Tax (LPT). Each of these charges have provided a wealth of information to Revenue with regard to individual property ownership. Following on from this it appears that Revenue are now using this information to determine if property is being rented, and if so, whether rental income has been correctly returned to Revenue.

The importance of returning your rental income

Where rental income has not been returned, landlords are being pursued not only for any taxes owing, but interest and penalties also.  In tandem with this Revenue can cross check whether or not a tenancy has been registered with the Private Residential Tenancy Board (PRTB) and will deny a deduction for mortgage interest where landlords cannot provide proof of registration.

Some of the common pitfalls that can lead to costly Revenue settlements include;

  • Taking an interest deduction where PRTB registration was not in place
  • Failing to restrict the deduction for mortgage interest to 75%
  • Claiming an expense deduction for capital items instead of a wear and tear allowance of 12.5% over 8 years.

Are you a landlord who has not returned rental income? Do you need assistance in bringing your tax affairs up to date? Are you keen to minimise your tax charge and your exposure to interest and penalties? Please contact our Tax Department on 01-2804731 or contact us via the contact form on the right of this page.

Every care has been taken to ensure that the information as detailed above is correct. You must not rely on the information on this website as an alternative to advice from your Accountant, Tax Advisor or other professional services provider.

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