Tax Events John McDonough
Personal Tax 1 July 2007
Personal Tax
Practice Consultant
Irish Taxation Institute Member
Welcome to the forth edition of my New VAT deduction for VAT on accomodation
practice‟s publication “Tax Views” where expenses relating to business conferences.
I hope to continue to update you on
9 July 2007
JMcD
current issues in Ireland concerning
personal taxation and news relating to
Stamp Duty Exemption for First Time Buyers
my practice.
legislation enacted.
My new website is currently under
development and my temporary site can
11 July 2007
Tax Views
be viewed at On-line Services for employers and employees
www.johnmcdonoughtaxconsultant.ie. up-dated on Revenue‟s Website. July 2007 – Number 4
My office will be closed from 31 August 17 July 2007
until 19 September 2007 as I will be
getting married in Rome and then off on New information leaflet published by Revenue
my honeymoon. So, if you need any concerning „Goods & Services‟ sold together by
urgent work done, send me the businesses.
information as soon as possible as I will
not have a phone or lap-top with me in
Rome or while on honeymoon!
John McDonough AITI BA (Hons)
Personal Tax Consultant
John McDonough This leaflet is for illustration and for reference only. John
McDonough will not be held responsible for anyone acting
or refraining from acting as a result of reading this leaflet.
Professional advice should be always sought dealing with
taxation matters
13 Anglesea Street
Can our Government
Temple Bar do more with Stamp
Dublin 2 Duty savings?
Phone:+353 1 6706888 & (086)8527787
Fax: +353 1 6706888
Email: jsmcdonough@eircom.net
Tax Issues When a Taxpayer Dies
COMMENT
What Should a Personal Representative do?
It is welcomed that First-time buyers are
Taxation Services 1) Notify the deceased’s tax office as soon as
possible after death. now exempt from Stamp Duty on
Heading 2) Sort out any outstanding tax issues of the purchasing any new or second hand home
deceased up to date of death as soon as possible. on instruments executed on or after 31
3) Ensure that all income and/or CGT tax arising March 2007.
during administration period is returned and paid
to Revenue. However, for married couples to qualify,
4) Ensure that a solicitor is appointed to apply to BOTH parties must be First-time buyers.
Probate office of the High Court to obtain either: a
E.g. A man who bought an apartment with
Grant of Probate (where there is a Will) of Letters
of Administration (where there is no Will). a family member a number of years before
getting married; the exemption is lost, not
An Inland Revenue Affidavit must also be
Mortgage Interest Relief completed and sworn by the personal only for himself but also for his spouse who
representative (normally taken care of by the had never bought a home before.
solicitor).
Mortgage Interest Relief has been given at
source for the past few years. This means that General Taxation Issues: I agree with the suggestion that the Stamp
your monthly repayments are reduced to Where a married taxpayer dies (being the ‘assessable Duty paid should be carried forward and
spouse’ under joint-assessment), all income & chargeable deducted from the Stamp Duty payable on
reflect the tax saving that you are entitled to.
gains are included on the deceased’s tax return from 1 Jan
a subsequent house purchase.
to date of death together with his/her spouse’s income &
Relief only applies to Qualifying Loans, i.e. a chargeable gains for the same period.
secured loan that must be used solely for the
Full married credits and standard rate bands are given for
purchase, repair, development or the full year of assessment notwithstanding the assessable
improvement of your principal private taxpayer died before the end of the tax year.
residence. The surviving spouse will be taxed on his/her own income
and gains from date of death [of the deceased spouse] to
the end of the tax year and she will receive single personal
A loan used for the purchase of an investment
tax credits and standard rate bands for that period.
property does not qualify. If part of your
A tax return may have to be prepared for the Estate of the John McDonough AITI BA (Hons)
mortgage is used to finance non-home
deceased taxpayer by the Personal Representatives of the Personal Tax Consultant
expenditure such as a holiday, car or Will (or by the Trustees if there is a Will Trust) from date of
education, then only the percentage applicable death to the end of the tax year, and possibly in the
following tax year(s) too until the Estate is wound up.
to your principal private residence qualifies for
There are no personal credits/allowances available to 13 Anglesea Street
mortgage interest relief. Temple Bar
reduce the tax liability of an Estate or Trust. Assessments
Dublin 2
on Personal Representatives are always made at the
If you are taking out a new or additional standard rate of tax (currently 20%) on the income Tel: +353 1 6706888 or (086) 8527787
Qualifying Loan, you should contact Revenue. chargeable.
Email: jsmcdonough@eircom.net