Even accountants I've spoken to seem unclear on this so any help/ pointers to specific Revenue regs would be great:
Situation
2024 - Ex-husband will assign his half of Irish house to me.
Questions:
Any help would be greatly appreciated.
The closest I've found is in :Separated Spouses: transfer of assets Part 44-02-02" which talks about
2.1 Relief disallowed
...The no gain/no loss rule does not apply to... if the acquiring spouse could not be taxed in the State (for the year of assessment in which the acquisition occurs) on a disposal of the asset in that year and a gain had accrued on that disposal. Such a scenario might arise where the taxing rights on such a
disposal, under a Double Taxation Agreement, rested with a foreign jurisdiction.
Situation
- Own house in Ireland - part PPR, part investment
- Separating from spouse - Consent orders to be signed Dec 2023 in Australia, likely ratified by court January 2024 - will look to get these recognised in Ireland.
- Me - resident in Ireland 2022 and 2023. Not resident in 2024.
- Ex-Husband - not resident in Ireland
2024 - Ex-husband will assign his half of Irish house to me.
Questions:
- Is my understanding correct that we cannot avail of exemption for CGT on his disposal to me as I am non resident for 2024 onwards? Also there is some uncertainty about whether Australian separation agreement will qualify. He will pay about 30k in CGT.
- Secondly - even if we could avail of it, I don't want to as I plan to sell this house within the next couple of years on my return to Ireland and if he does not pay his CGT now I will need to pay his 30k, plus my share of the CGT. With that in mind can I 'opt" not to agree to avail of the exemption even if it was available?
Any help would be greatly appreciated.
The closest I've found is in :Separated Spouses: transfer of assets Part 44-02-02" which talks about
2.1 Relief disallowed
...The no gain/no loss rule does not apply to... if the acquiring spouse could not be taxed in the State (for the year of assessment in which the acquisition occurs) on a disposal of the asset in that year and a gain had accrued on that disposal. Such a scenario might arise where the taxing rights on such a
disposal, under a Double Taxation Agreement, rested with a foreign jurisdiction.