CGT...Can I offset loss?.....Help please!

T

taxman732

Guest
I'm in the process of selling two properties, one of these properties will make a gain the other a loss.

I know in normal circumstances I'd be able to offset the loss against the gain and pay tax at 20% on the balance. However, one of these properties is in Estonia..... The one I'm making the loss on.

I've about €15,000 of a gain on the Irish property and about €6,000 of a loss on the Estonian property. Can I offset the foreign loss against the Irish gain?

I'd really appreciate any help anyone can give.
 
As far as I know you can offset the loss against the gain in this situation. You should get professional advice though.
 
I disagree, but I'm not sure, so I don't think you can offset the loss in a different country against your gain in Ireland.
 
If OP would have been charged CGT on the disposal if he'd made a profit on the property in Estonia by virtue of being resident here, would that not be the test for whether the loss would be allowed? Assuming residence, ordinary residence and domicile here, I think OP would have been charged CGT if there was a gain....

A call to Revenue (at least) is required OP!

Sprite
 
Losses

What happens if I make a capital loss on the disposal of my foreign property?

If you are Irish resident or ordinarily resident and Irish domiciled you can set the loss against other capital gains, other than gains made on the disposal of Irish development land. If you have no capital gains in the year of disposal, you can carry the loss forward against future gains. You cannot set your capital loss against income such as employment, rental or investment income.

Sorry I was incorrect in my last post, I was thinking of foreign rental income losses, I copied the quotation from the revenue website on CGT but it took a bit of searching.
 
Last edited:
You can definatley offset losses against your gain. This can be confirmed by contacting Revenue directly.
 
Be aware land development gains can only be offset with/against land development losses. Therefore if your Irish gain is of land development and the Estonian gain is not - then no offset is allowed.
 
Do you mean that gains/losses on, say, shares, property and "land development" are treated separately? I thought that a capital gain/loss was the same regardless of the class of asset on which it arose.
 
ClubMan said:
Do you mean that gains/losses on, say, shares, property and "land development" are treated separately? I thought that a capital gain/loss was the same regardless of the class of asset on which it arose.
Click to expand...
Only when it comes to development land. The rule is 'You may not set an 'ordinary' loss against a development land gain, but you can set a development land loss against an 'ordinary' gain'.
 
You must log in or register to reply here.
Back
Top