House Sale by Expat - Tax?

[Expat2006]

Good Afternoon,
Hopefully someone can help a confused Expat.
I bought a house in Ireland as a First Time Buyer in Jan 2003, No stamp Duty as applicable. I have always lived in the house. I started to rent out rooms at beginning of 2006 and I moved abroad to Germany in November 2006.
I am now going to sell the house.
Q1: I am presently looking at completeing my Tax return for 2006. Should I claim for the Rent a Room Scheme.
Q2: What are my tax liabilities on selling the house. I have been told that I am not liable for CGT if I sell within 12months.
Q3: Do I have Tax Liabilities in Germany now that I am a resident there.
Are there any other liabilities I should be aware of.

 

[Newby]

Re: House Sale by Expat - Tax??

I think you should talk to an advisor to ensure any advice correctly reflects you circumstances.

I think one of the questions you are trying to ask is whether or not the rent a room relief applies to your circumstances. Professional advice is the best way to address this.

If it does apply and the rent is under the relevant threshold then you would be exempt from income tax on the rent received and also not liable to a stamp duty clawback. If it doesn't apply then you would be liable to income tax on the rents and may be liable to a stamp duty clawback.

Provided that you house was your principal private residence throughout the period of ownership up to 1 year it is sold no cgt should apply.

The Revenue have some guidelines on this and there are buckets of threads on the rent a room relief and stamp duty clawback.

As for German tax, it depends on their rules and maybe someone with experience can provide some guidance but again you should seek advice. Off the top of my head I imagine that Ireland has first taxing rights on any property located in Ireland and there may be a credit available against certain German tax liabilities for Irish tax paid.