CGT on UK Property

M

MConnolly

Registered User
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Hi there,

Looking for advice on how much Capital Gains Tax I would owe in Ireland if selling a property in the UK in order to buy a home here. I'm not familiar with CGT rules in Ireland and the property was my home for 5 years and then I let it out for 4 years.

If anyone has any expertise in this area, would appreciate what % of tax I would owe here in Ireland.

Thanks,

MC
 
I don't believe you'd owe any tax in Ireland. First step is to sell the house in the UK, and pay whatever CGT applies there.

If you had the UK house rented out, than you may owe income tax on the rent. After having done your UK tax income tax returns.
 
Thanks, yes income tax for UK is up to date. If I bring money back into Ireland, I would have thought CGT would be owed here also or on top of what I would pay in the UK?
 
Your thinking is spot on.

If you're Irish resident at time of disposal you'll be liable to Irish CGT on the disposal*, with a credit for any UK tax liability. As Irish CGT rate is higher than UK you'll end up with a liability in the U.K. and a further liability here.


* If Irish resident but not Irish domiciled you're only liable if you remit the money to Ireland but that's a moot point since that's what you've said you intend to do!
 
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What about reciprocal tax agreements between ireland and the uk, I should only have to pay in one location i.e. where I hold the gain. The property has been my main home for majority of time owning it - do you know how this is dealt with under Irish regulations ? thanks again.
 
As the previous posters have said if you are resident you are subject to Irish CGT. The amount will depend on a number of things.

How much is the gain.

3/9 of the gain will be taxed in Ireland. If UK Principal Private Residence Relief is the same then the same amount will be taxed in both countries.

The UK have a much higher annual exemption of £11,100, (ours is €1,270) Their rate is 28% ours is 33%.

So you will have to pay Irish CGT less the amount you paid in the UK.
 
I'm in a similar situation, if you are not domiciled for that tax year you will not be liable for the Irish capital gains. So if you move back to Ireland but haven't lived there long enough to be considered domiciled you might not be liable for capital gains in Ireland for that tax year. Call revenue at 353 18655000 and ask for customer service for non residents.
What happens if you don't remit the money? Can revenue track the money if you access it from an Irish ATM?
 
torblednam said:
If you're Irish resident at time of disposal you'll be liable to Irish CGT on the disposal*, with a credit for any UK tax liability. As Irish CGT rate is higher than UK you'll end up with a liability in the U.K. and a further liability here.


* If Irish resident but not Irish domiciled you're only liable if you remit the money to Ireland but that's a moot point since that's what you've said you intend to do!
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What if you made a loss on the property. Can that be transferred to Ireland? To carry forward against a gain?
 
Una Kilcooley said:
I'm in a similar situation, if you are not domiciled for that tax year you will not be liable for the Irish capital gains. So if you move back to Ireland but haven't lived there long enough to be considered domiciled you might not be liable for capital gains in Ireland for that tax year. Call revenue at 353 18655000 and ask for customer service for non residents.
What happens if you don't remit the money? Can revenue track the money if you access it from an Irish ATM?
Click to expand...

Wait a second, domicile is a very very difficult legal concept. Are you sure you don't mean residency. Residency has very clear rules.

It would be nigh on impossible for an actual Irish person even if returning to Ireland after 40 years in the UK to claim they were UK domiciled. Especially if they were moving back for good. Length of time does not automatically mean domiciled. It can count towards it but it's much more than that.
 
Bronte said:
What if you made a loss on the property. Can that be transferred to Ireland? To carry forward against a gain?
Click to expand...

Transferred isn't really the right way to describe it. If you're both Irish resident and domiciled you are within the scope of Irish CGT on all disposals of chargeable assets. A loss on a foreign property is no different than a loss on property in the State, it's fully available for use against chargeable gains here. (Whether you have the that loss available for use elsewhere as well is totally irrelevant BTW.)
 
Are you saying you could use the 'loss' twice. In the UK and Ireland?

Anyway it's a good reminder this thread to those of us who live abroad and own property that we may potentially sell when we might retire to Ireland.
 
Una Kilcooley said:
I'm in a similar situation, if you are not domiciled for that tax year you will not be liable for the Irish capital gains. So if you move back to Ireland but haven't lived there long enough to be considered domiciled you might not be liable for capital gains in Ireland for that tax year. Call revenue at 353 18655000 and ask for customer service for non residents.
Click to expand...

This is correct if you read RESIDENT and not DOMICILED.

Resident is where you live, and can change from year to year. there is a test for residency based on the number of days you spend in the country in a given year.

Domiciled is a very different concept
 
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