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HMRC internal manual

International Manual

DT Agreements: Ireland - Income from a UK source paid to a resident of Ireland

Claims by Irish charities and superannuation schemes

Recognised charities and approved superannuation (pension) schemes enjoy a special status in Ireland, which is reflected in certain Articles of the convention.

Article 11(2)(b) defines superannuation schemes for the purposes of the convention, and Article 14A provides for relief to charities and superannuation schemes in respect of income from immovable property in the UK.

If you have any difficulty with this type of claim or application, please consult Technical Advice Group before processing it.

How you recognise this type of claim

The claimant’s title and the category of income involved will usually help you to identify claims of this type.

How this type of claim must be certified

Because our claim forms do not provide for the specific certification required for claims/applications by these bodies, you will usually receive a copy of a letter from the Revenue Commissioners of Ireland to the claimant confirming its status. You can accept the copy letter as certification, provided that it contains an acceptable certification.

Acceptable certifications are “exempt approved” or “100% exempt” under:

  • Section 774 Taxes Consolidation Act 1997
  • Section 783, 784 or 785 Taxes Consolidation Act 1997

Please refer any other certification to Technical Advice Group before you accept it.

When considering a claim by the pension/superannuation scheme of an individual, you should be certain that the certification given relates to the pension/superannuation scheme, and not to the individual him/herself.

What special relief only these bodies can claim

Full relief in respect of tax deducted from rentals paid by tenants of immovable property in the UK which the exempt Irish body owns. Rentals are often collected for tenants and paid to the landlord by a letting agent.

Exempt Irish bodies and the Non-Resident Landlords Scheme

The Non-Resident Landlords Scheme (NRLS) provides for payment of rentals to the landlord without deduction of tax. The scheme also requires the landlord to make returns of his letting income and expenses, and to pay any tax which may then be due.

But where the landlord is a tax exempt Irish body, there will be no tax to pay, and such bodies should therefore not join the NRLS.

If you have a claim or application by a tax exempt Irish body which has mistakenly joined the NRLS, you should liaise with the NRLS team so that remedial action can be taken. You may then also need to contact the Audit and Pension Schemes Services office (APSS) if a tenant or letting agent has made an unwarranted assumption or decision that tax need not be deducted from rentals paid over to the landlord before treaty relief was authorised.

Partially exempt Irish bodies and the Non-resident Landlords Scheme

Where the Irish body (normally an insurance company) is exempt only in respect of its pension business, it will usually need to join the NRLS. It will then be required to make SA returns, and to submit certificates from the Revenue Commissioners of Ireland showing the extent of its exemption for each period. Any relief which would otherwise be due by way of repayment can then be offset against the body’s liability to tax under the NRLS.

Notes about the NRLS itself begin at INTM370000