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Non Principal Private Residence charge (NPPR) Update

Back in a recent post we flagged a recent decision of the High Court on the deductibility against rental profits of the NPPR charge. This has been appealed by Revenue to the Court of Appeal. Until that appeal is decided Revenue are not in a position to amend assessments or process repayment claims based on the High Court judgement.

While 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, that right is subject to a limit of four years from the end of the chargeable period to which the claim relates.

As Revenue is not in a position to amend assessments or process repayment claims until the outcome of the Appeal case is known yet there is an issue regarding the four year time limit Revenue have clarified the following

“any claims that are received within the statutory time limits, as they apply to each year of assessment, will be retained by Revenue; and processed when the outcome of the Appeal case is known. For example, if the decision of the Court of Appeal is made in 2018, any claim made in 2017 in respect of the year of assessment 2013 will be retained and processed in 2018.

If you have paid the NPPR charge for 2013 and wish to notify Revenue to deduct the payment from your previously declared rental income please do so by submitting a Notification Form through MyEnquiries”

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Joe Cunnane Practice Owner TRA Professional Services       Qualifications:  FCA Chartered Accountant & AITI Chartered Tax Advisor Joe has over 20 years experience working in both private practice and industry ... Read More »