WDF – Offshore Land Inheritance & Rental Tax
Another case flagged up that HMRC have access to records in the South of Ireland which of course is not part of the UK.
They have written to a client who had also inherited some land in Ireland. This client had her own accountant in Dublin and made annual tax returns there.
She declared all her income from this land which was rented out just outside Dublin. In fact, the tax regime over there is very similar to that of the UK apart from the fact that the year end is not the 5th of April each year but is a calendar year basis to the 31st of December.
Therefore, to calculate any tax omitted one had to apportion the tax to the UK basis. This case resulted in no additional income tax being payable and the case being closed down. However, indicates that HMRC are currently looking into quite a lot of cases where there is a source of income in Eire, but the taxpayer resides in the UK.
