Implications for UK investments on moving to Ireland?

O

onthewayover

Guest
Hi

My wife and I will soon be moving over to Ireland. We're in the final stages of our house sale in London and before we move would like to put some of the sale proceeds into ISAs (tax free investment vehicle over here where you pay no tax on income or capital growth) as part of our pension planning. We already have some ISAs in place.

My question is, what would be the tax status / implications of these when we eventually cash them in and transfer the funds over to Ireland in 30 or so years' time? I think Iread somewhere that as long as taxes were paid in the country where the investments were held, there would be no tax to pay in Ireland until you started saving / investing the proceeds in the Republic?????

Any info or suggested further reading really greatfully received.

Great site by the way....
 
onthewayover said:
would like to put some of the sale proceeds into ISAs (tax free investment vehicle over here where you pay no tax on income or capital growth) as part of our pension planning. We already have some ISAs in place.
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Aren't ISAs only tax free (?) for UK residents and if you are moving here for good then you will cease to qualify on any existing or new accounts?
I think Iread somewhere that as long as taxes were paid in the country where the investments were held, there would be no tax to pay in Ireland until you started saving / investing the proceeds in the Republic?????
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I don't think that this is true in the general case. At the very least I would imagine that a double taxation agreement might apply so that you get a credit for tax paid abroad but you may still be liable for further taxes as an individual resident/domiciled in Ireland.

You probably need professional advice since the sums involved are probably significant. www.revenue.ie has some information about immigrating to Ireland and the tax and other implications that might be of use.
 
ClubMan said:
Aren't ISAs only tax free (?) for UK residents and if you are moving here for good then you will cease to qualify on any existing or new accounts?
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Cheers for the quick response ClubMan and for the link. It was my understanding that as long as you are a tax paying resident in the UK you can open an ISA, but cannot add to it or open further ones once you leave. Will have to investigate further, but getting sense out UK revenue websites can be tricky.

On another point, are there similar Tax free saving / investment vehicles available in Ireland. I looked briefly a while back but came up with nothing...? Thanks again.
 
onthewayover said:
Cheers for the quick response ClubMan and for the link. It was my understanding that as long as you are a tax paying resident in the UK you can open an ISA, but cannot add to it or open further ones once you leave. Will have to investigate further, but getting sense out UK revenue websites can be tricky.
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Presumably there are other sources of info too? For example www.fool.co.uk (articles and forums) might cover this stuff?
On another point, are there similar Tax free saving / investment vehicles available in Ireland. I looked briefly a while back but came up with nothing...? Thanks again.
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There's nothing comparable to ISAs here as far as I know. Special term deposit accounts have some tax advantages but - as far as I know - they are not popular, the rates on offer are not competitive with regular deposit rates at the moment and the tax benefits are largely marginal. Pension savings are obviously tax effective but not liquid. Some Post Office savings options are tax free but again the rates are not really competitive. Prize Bonds and Lotto winnings are tax free but obviously that's more gambling (albeit with a refundably ticket in the case of PBs) than saving/investing. Can't think of anything else offhand.

A few more sites that might be of use to you:

www.citizensinformation.ie
www.itsyourmoney.ie
www.revenue.ie
www.welfare.ie
 
Thanks again ClubMan. Will have a good search around those links.
 
Once you become non-resident in the UK - as you mentioned - you cannot continue contributing to your Individual Savings Accounts. While you remain overseas your ISA will still be entitled to the tax breaks , but for the duration of your period of non-residence your ISA cannot be invested into. If you move back to the UK and become resident once more you can restart your savings and even open new ISAs.

When you transfer money over here from the UK - you will start paying tax on any interest it earns here (DIRT).
 
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