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Liam McGrath & Co

Chartered Certified Accountants

& Chartered Tax Advisors

GDRP Compliance

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For people who own residential properties and are renting them out to tenants, there have been a number of significant changes to both the taxation, and the extra administration work associated with these properties over the last number of years.

One of the most important items is to register with the RTB (Residential Tenancies Board) either online via RTB.ie or by completing the RTB form and submitting payment of 90 if filed within 28 days of commencement of the lease or 180

thereafter as it is considered late.


This RTB form must be renewed at every change of tenancy or every 6 years if the tenancy did not change on residential leases that commenced since January 2017 (every 4 years for leases commenced before January 2017). It is essential that this is completed on time as RTB are fining landlords for non compliance and from a tax point of view, the rental mortgage interest on the property is disallowed for income tax purposes. As this is normally the main expense for offset against the rental income, this can result in a large income tax bill, especially for those already paying the high rate of income tax.


Other Rental Expenses: A landlord should keep receipts for all of the following which are allowable for deduction against rental income: insurance, repairs & renewals, agent letting fees, 1/8 per annum of cost of furnishings and fittings over 8 years, some telephone & motor costs, and other rental costs



Local Property Tax (LPT): Any self employed person or a proprietary director who does not pay the LPT on time each year, will be liable to an extra 10% on their income tax for that year which can be a significant increase in taxes.



Landlord & Self Employed? A self employed person with a number of rental properties, should consider incorporating the trade/business into a company, thereby leaving the rental properties liable to lower rate income tax. This would need to be discussed with a professional tax adviser before proceeding.



Disclaimer: The above is a general non technical summary around some of the issues regarding renting residential property. You should always seek professional advice when tax planning, as different circumstances give rise to different issues to be addressed.













GDRP Compliance

Text Box: Text Box: Dublin Road, Roscrea, Co Tipperary.

	Tel: 0505-22992
	Mob: 087-9060666
E-Mail: liammcgrath.roscrea@gmail.com