73 Income from certain possessions in Great Britain or Northern Ireland

Summary

Special rules apply to the computation of income of non-domiciled persons and non-ordinarily resident Irish citizens arising from possessions in the United Kingdom. The remittance basis does not apply in such cases. Instead such income is computed on the same basis as if the income had arisen in the State, that is, on the full Great Britain or Northern Ireland income arising. Any deductions, allowances or reliefs which would be available if the income source arose in the State are available in respect of the income (other than income from stocks, shares, rents or the occupation of land). These special rules cease to have effect in respect of income arising on or after 31 January 2008.

Details

(1) The term “rents” is given an extended meaning to include royalties in addition to payments which would normally be considered rents.

(2) By disapplying section 71(2), the remittance basis of assessment does not apply to the income of non-ordinarily resident Irish citizens or non-domiciled persons which arises from property situated in Great Britain or Northern Ireland. Instead such income is subject to the normal rules relating to the Case III basis of assessment contained in sections 70 and 71. Also the rules in subsection (3) apply to such income despite anything to the contrary in sections 70 and 71.

(3) Income tax on income arising from possessions in Great Britain or Northern Ireland is computed either on the full amount of income arising in the year of assessment or on the full amount of such income on an average of such period as the case may require and as may be directed by the Appeal Commissioners. Excluded from this provision is income arising from stocks, shares, rents or the occupation of land. Deductions are available in respect of an annuity or other annual payment (other than interest) payable out of the income to a person not resident in the State. Persons chargeable under this provision are also entitled to the same allowances, deductions and reliefs as if the income had arisen in the State.

(4) The section ceases to have effect in respect of income arising on or after 31 January 2008.

Relevant Date: Finance Act 2021