TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Non Principal Private Residence charge

In a case heard before the High Court in Ireland, it was determined that the Non-Principle Private Residents (NPPR) charge could be taken as a deduction against rental income for income tax purposes. It has been reported that Revenue has appealed this decision and Minister for Finance, Michael Noonan, in response to a question on this matter in the Dáil stated:

“I am advised by Revenue that the High Court decision concerning the deductibility against rental profits of the Non Principal Private Residence charge (NPPR) has been appealed by them to the Court of Appeal. While that appeal is pending, Revenue is not in a position to amend assessments or process repayment claims based on the High Court judgement. Revenue advises that there is a general right to repayment of tax provided for in Section 865 of the Taxes Consolidation Act 1997, where a person has paid an amount of tax which is not due. However that right is subject to a statutory limit of four years from the end of the chargeable period to which the claim relates. That statutory limit is binding on Revenue.

I am further advised by Revenue that any repayment claims made in relation to this matter that are received within the 4 year statutory time limits, as they apply to each year of assessment, will be retained and processed when the outcome of the Appeal case is known.”

The issue of making a claim was raised at a recent Tax Administration Liaison Committee (TALC) meeting and Revenue stated that it is developing an online notification procedure by which taxpayers can follow to lodge a claim and will communicate further details shortly. We will keep members updated. Revenue eBrief No. 25/17 has further details.