PIM1230 - Other sums treated like premiums: Transfer of land - Irish Republic
This page explains what you should do if you meet attempts to avoid the tax on premiums by means of a transfer to a person resident in the Irish Republic.
Without legislation to counter it, attempts could be made to avoid the tax on premiums etc. by the transfer of land to a person resident in the Irish Republic.
- Property could be transferred to a person resident in the Irish Republic, who is exempt from UK tax under the double taxation treaty with the Irish Republic (for example a company controlled by the transferor).
- The Irish resident would not suffer Irish IT on any premium for the grant of a lease on the property because Irish tax law does not tax premiums as UK tax law does.
ICTA88/S746 counters this device. The same procedure will apply as in the case of transfers of income abroad under ICTA88/S739 and ICTA88/S743 - S745. You should therefore follow the instructions in INTM600000 onwards about reports etc. to CAR Trusts & Estates subject to the substitution of “any person” for “an individual”.
The way ICTA88/S746 operates is to apply ICTA88/S739 etc. to the amount which would have been chargeable on the premium for the UK resident. This means that it is not treated as a receipt of the rental business.