CGT Query on UK Property

E

erw fran

Registered User
Messages
77
I am trying to get a rough idea of how much CGT I would pay on a UK rented property which was my PPR initially and I would be grateful for some feedback;

Cost : £67,500 1999/2000 tax year
Multiplier: £67,500 * 1.193 = £80,528
Potential Sale: £162,000
% Time PPR including "free" 12 months : 38%
Gain : (162,000 - 80,528)*62% = £50,513
Less Allowance * 2 (jointly owned& converted to £) = £1,722
Less Acquisition Costs: £1,400
Less Disposal Costs: £2,000
CGT Payable on : £46,790
CGT : £9,358 roughly €14,000

I have not included management fees or enhancement costs as I have used this to offset the rental income in the past, and I assume that you cannot use it twice?
Is there anything I have forgotten?
 
You have no CGT liability in the UK - only in Ireland.
The Inland Revenue may want to see if you owe income tax and penalties on the rental income earned.
 
Not sure that true. The individual may be ordinarily resident in the UK, its not clear the individual is Irish.
 
Also for Irish tax purposes you must convert the sales, purchase price and all other costs to Euro not calculate the gain or loss and convert it to Euro. The exchange rates used will be those in effect at the different dates. This can result in a different loss/gain depending on fx movements
 
I know I have no liability in the UK, this is why I am posting it here, I am an Irish resident, paying tax in Ireland, I have submitted tax returns to the inland revenue every year and have offset expenditure with rental income which is why I ask the question that I can't use the same thing twice. Can you direct me to where it says in the revenue that you have to convert to Euro at the time it is incurred as surely you do not actually realise a conversion to Euro until you have to pay the CGT.
 

5. Assets acquired and/or disposed of in Foreign Currencies
Where acquisitions and disposals are made in foreign currencies the relevant acquisition costs and
relevant disposal proceeds should be converted to Euro at the date of acquisition and the date of
disposal respectively. Refer to Example 8, Chapter 11, for a practical example of how to calculate a
chargeable gain and tax payable where assets are acquired and disposed of in a foreign currency.
Click to expand...

from Guide to Capîtal Gains Tax page 11from www.revenue.ie​
​
​

 
thanks, although it makes it more complicated, I presume I convert it to the IEP rate at the time
 
You must log in or register to reply here.
Back
Top