Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Conlon O’Sullivan & Co Registered Tax Consultants Chartered Certified Accountants www.conlonosullivan.ie
Who are we? <ul><li>Practice formed 2007 </li></ul><ul><li>Extensive industrial/commercial background </li></ul><ul><li>Re...
Rental Income <ul><li>Income Tax </li></ul><ul><li>Capital Gains Tax </li></ul><ul><li>Stamp Duty </li></ul><ul><li>VAT </...
Income Tax <ul><li>What is Rent? </li></ul><ul><li>Allowable Costs </li></ul>www.conlonosullivan.ie
What is Rent? <ul><li>Rent due </li></ul><ul><li>Repairs met by tenant </li></ul><ul><li>Premium on lease < 50 years </li>...
Lease Premium <ul><li>Lease < 50 years </li></ul><ul><li>Part of premium is income taxable </li></ul><ul><li>20 year lease...
Lease Premium Contd <ul><li>If excessive hardship may spread </li></ul><ul><li>Max 8 years </li></ul><ul><li>With Revenue ...
Allowable Costs <ul><li>75% Interest from date occupied </li></ul><ul><ul><li>Residential? </li></ul></ul><ul><ul><ul><ul>...
Other Write-Offs <ul><li>Capital Allowances on Plant & Fixtures </li></ul><ul><ul><li>12.5% per annum </li></ul></ul><ul><...
Capital Gains Tax <ul><li>Grant a lease </li></ul><ul><li>Sell a lease </li></ul><ul><li>Create sublease </li></ul>www.con...
Stamp Duty on Lease <ul><li>On rental – depending on term </li></ul><ul><ul><li><=35 years    1% </li></ul></ul><ul><ul><l...
Beware the Clawback <ul><li>Owner Occupier Stamp Duty Reliefs  e.g </li></ul><ul><ul><li>First-time buyer </li></ul></ul><...
VAT on Property <ul><li>Very complex </li></ul><ul><li>New rules since July 2008 </li></ul><ul><li>VAT history of non-resi...
Letting Opportunity Lettings after July 2008 <ul><li>Insurance Broker - Exempt – Buys a Building €135,000 V.A.T. included ...
Upcoming SlideShare
Loading in …5
×

Conlon O’Sullivan &amp; Co Rental Property Presentation

497 views

Published on

  • Be the first to comment

  • Be the first to like this

Conlon O’Sullivan &amp; Co Rental Property Presentation

  1. 1. Conlon O’Sullivan & Co Registered Tax Consultants Chartered Certified Accountants www.conlonosullivan.ie
  2. 2. Who are we? <ul><li>Practice formed 2007 </li></ul><ul><li>Extensive industrial/commercial background </li></ul><ul><li>Registered Consultants Irish Taxation Institute </li></ul><ul><li>ESE Branch and Professional Affairs Committee </li></ul>www.conlonosullivan.ie
  3. 3. Rental Income <ul><li>Income Tax </li></ul><ul><li>Capital Gains Tax </li></ul><ul><li>Stamp Duty </li></ul><ul><li>VAT </li></ul>www.conlonosullivan.ie
  4. 4. Income Tax <ul><li>What is Rent? </li></ul><ul><li>Allowable Costs </li></ul>www.conlonosullivan.ie
  5. 5. What is Rent? <ul><li>Rent due </li></ul><ul><li>Repairs met by tenant </li></ul><ul><li>Premium on lease < 50 years </li></ul><ul><ul><li>Part is income taxable </li></ul></ul><ul><li>Capital sum to transfer rents </li></ul>www.conlonosullivan.ie
  6. 6. Lease Premium <ul><li>Lease < 50 years </li></ul><ul><li>Part of premium is income taxable </li></ul><ul><li>20 year lease with Premium €50,000 </li></ul><ul><li>Income Taxable = 31,000 </li></ul>www.conlonosullivan.ie
  7. 7. Lease Premium Contd <ul><li>If excessive hardship may spread </li></ul><ul><li>Max 8 years </li></ul><ul><li>With Revenue agreement </li></ul>www.conlonosullivan.ie
  8. 8. Allowable Costs <ul><li>75% Interest from date occupied </li></ul><ul><ul><li>Residential? </li></ul></ul><ul><ul><ul><ul><li>Register with PRTB! </li></ul></ul></ul></ul><ul><li>Repairs after first occupied </li></ul><ul><li>Auctioneers & Solicitors Fees </li></ul><ul><li>Accountancy Fees </li></ul><ul><li>Insurance </li></ul>www.conlonosullivan.ie
  9. 9. Other Write-Offs <ul><li>Capital Allowances on Plant & Fixtures </li></ul><ul><ul><li>12.5% per annum </li></ul></ul><ul><li>Lease Premium over term of lease </li></ul><ul><li>Unpaid Rent </li></ul>www.conlonosullivan.ie
  10. 10. Capital Gains Tax <ul><li>Grant a lease </li></ul><ul><li>Sell a lease </li></ul><ul><li>Create sublease </li></ul>www.conlonosullivan.ie
  11. 11. Stamp Duty on Lease <ul><li>On rental – depending on term </li></ul><ul><ul><li><=35 years 1% </li></ul></ul><ul><ul><li>35-100 years 6% </li></ul></ul><ul><li>Premium based on amount as for a sale price </li></ul><ul><ul><li>E.g. €50,000 premium = 4% = €2,000 </li></ul></ul>www.conlonosullivan.ie
  12. 12. Beware the Clawback <ul><li>Owner Occupier Stamp Duty Reliefs e.g </li></ul><ul><ul><li>First-time buyer </li></ul></ul><ul><ul><li>Small Floor area Certificate </li></ul></ul><ul><li>Earn any rent within 2 years </li></ul><ul><ul><li>Stamp Duty clawed back with interest! </li></ul></ul><ul><li>Random Audits </li></ul>www.conlonosullivan.ie
  13. 13. VAT on Property <ul><li>Very complex </li></ul><ul><li>New rules since July 2008 </li></ul><ul><li>VAT history of non-residential property </li></ul><ul><li>Some opportunities </li></ul>www.conlonosullivan.ie
  14. 14. Letting Opportunity Lettings after July 2008 <ul><li>Insurance Broker - Exempt – Buys a Building €135,000 V.A.T. included </li></ul><ul><li>Cannot claim V.A.T. back </li></ul><ul><li>5 year later, lets half of Building to an Accountant – Not Exempt </li></ul><ul><li>Now can claim back – </li></ul><ul><li>€ 135,000 x Half x 15/20 = €50,625 </li></ul>www.conlonosullivan.ie

×