CGT on 'gifted' Irish property for UK resident

in 2015 my parents transferred ('gifted') their home in the Republic of Ireland to me.

All CAT was taken care of at the time.

They both died 2 years ago and I am now considering selling the property.

I never lived in it, it was never my principal home.

They lived in it and had rights to do this as part of the gifting process.

I am a UK resident and live in the UK.

Am I right to think that I will simply face a 33% Irish CGT bill on any gain in the value of the property since it was gifted to me back in 2015?

It was officially valued back in 2015 when it was gifted to me.

Many thanks,

DD

Am I right to think that I will simply face a 33% Irish CGT bill on any gain in the value of the property since it was gifted to me back in 2015?

Yes, more or less.

Note that as a non-resident, you will also need to obtain a CGT Letter of No Audit from Revenue before your solicitor can pay you the proceeds of the sale.
See https://mcgibney.ie/2022/01/11/the-capital-gains-tax-letter-of-no-audit-for-non-irish-residents/

thank you so much

Follow-up question if I may.

As a UK resident and tax payer do I also need to declare the sale to HMRC?

Please tell me there’s no additional CGT to pay ;-)

Many thanks

You'll have to get assistance from a UK source on any UK tax queries like this one. While some of us here might know a bit about the UK system, few of us would know enough with any degree of certainty to even give general guidance.

As the property is situated here, any gain on its sale is primarily taxable here. In the event of a secondary liability arising in the UK, you would normally get a credit there for any tax paid here. Owing to the high CGT rate and the absence of indexation here, you'd be highly unlikely to owe an additional sum in the UK unless there is something I'm missing.

You also ought really to amend the title of the thread to properly describe your query, in line with our Posting Guidelines.

It may also attract others to assist you.

Thank you - and will amend title accordingly, most grateful

Ok folks, after reading through a pile of documentation my situation gets more complicated.

So, this is a question about CAT and its relationship with CGT.

I should say that I am not being lazy by posting on here, I have tried to decipher the Irish Revenue website but it is one of the most incomprehensible technical explanations I have ever had the misfortune to read.

As I said in the original post, my parents gifted me the property back in 2015.

They paid the CAT on my behalf. In fact they were beneath the CAT threshold at the time (225k) and had an unused portion of it (about 40k).

When they gifted me the property they retained non-exclusive rights of residence that would cease on their death.

So where am I now with CAT - did I need to pay the IR anything? Did I need to notify them that the right of residence had ceased?

Does this affect the amount of CGT I could pay if I dispose of the property?

So many questions, for which I apologise.

But this is like wading through treacle.

Donal

donal_donegal said:

They paid the CAT on my behalf. In fact they were beneath the CAT threshold at the time (225k) and had an unused portion of it (about 40k).

Click to expand...

Sorry, that makes no sense.

They had no CAT threshold. You had a threshold of €225k on all gifts and inheritances received from either or both parents.

So if the house was worth €306k, you had the first €231k CAT free and €75k was subject to CAT ( You get two Small Gift allowances of €6k) - assuming you were resident in Ireland at the time.

I don't know to what extent the valuation is adjust for their right of residence.

But if you were resident in the UK at the time, then different rules would apply.

"But if you were resident in the UK at the time, then different rules would apply"

No, Irish CAT rules would apply once the donors of the gift in question were then Irish residents and the gift was of Irish property.

It's unlikely the conveyance of that property to the OP took place without Revenue knowing about it, but if the OP is now worried about CAT implications, they should nonetheless check it out.

It will likely have no effect on the planned property sale and the associated CGT treatment thereof.

Thank you, once again