Irish Capital Gains Tax on Sale of Main Residence in UK

P

Pesche

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Hi,

I'm having terrible difficulty getting a clear reply out of Irish Revenue on this:
I'm in the process of moving to Ireland from the UK, and already own an Irish property.
However, I am still tax resident in the UK and have been living for most of the year in what has been my main residence inn the UK for 27 years.

My question: Should I become tax residence in Ireland in 2025, having not sold my UK property yet (as I needed somewhere to live in the UK up until my definite move to Ireland), would I be required to pay Capital Gains Tax in Ireland once I do sell my UK property during 2025, despite already being an Irish tax resident?
Or would I be exempt, as my UK property was my Principal Residence for the previous 27 or 28 years?
CGT in the UK in such a case would be 0%.

A simplified question would be: Are you exempt from CGT in Ireland if the property you're selling abroad was your Principal Residence.

Many thanks,

Peter
 
All the evidence I can find supports the answer to your simplified question being yes, as long as there is less than 12 months between you moving out of your PPR and selling it. (this grace period is designed for cases like yours) If the period at the end is longer than 12 months then it becomes a more complex pro-rata calculation. There is a revenue guide on this that's currently being updated S.604.

Again the evidence I can find treats this property in the UK exactly the same as if it were in Ireland.

Also if you bought the Irish house well before it became your PPR you will have a pro rata liability on the gain when/if you come to sell it.
 
If you move to Ireland there is a potential additional relief where your job required you to move up to a four year maximum.

As has been said @Farma1 you have the last 12 months in any event.
 
Hi Peter, I have been advised, as I am in the same position as you, the most tax efficient always is to sell you property while you live in it or before you move country.

Keep us updated on how your sale goes.
 
Hi Minidminxx, and thanks for your advice.
Many months after I started this thread, and after repeately asking Irish Revenue about this online, I finally received this reply last month:

"Dear Sir,

I apologise for the delay with our reply.

Even if you become tax resident in Ireland, you will be exempt from CGT if you dispose of a property that, for the entire period of ownership, you:

· lived in it as your main residence
· used all the property as your home

You can only claim PPR relief for the time you lived in the property.

You will be considered to have lived in your property where:

· you could not live in the property because your employer required you to live elsewhere (up to a four-year maximum.)
· you had a job, all the duties of which were performed outside the Republic of Ireland
· your PPR remained unoccupied and you were either:
· receiving care in a hospital, nursing home or convalescent home
· resident in a retirement home on a fee-paying basis.

If you become tax resident in Ireland after selling the property, the sale will be outside of the scope of Irish tax.

If you become tax resident in Ireland before selling the property, your PPR relief will be reduced on a portional basis. That is your PPR relief will be calculated as follows:
(Gains on the sale) / (amount of months you owned the property for) x (amount of months you lived in the property as a PPR)

Yours Sincerely,


Service to Support Compliance 2
Business Division "

I then asked a follow-up question about a grace period, to which I received the following reply only 4 weeks ago:

"Dear Peter,

Thank you for your recent enquiry.

PPR Relief is restricted if you did not fully occupy the property or the sale price has development value. The last 12 months of ownership of a PPR is considered to be included in your period of occupation. This allows for the possibility that you have moved into your new home, but have not sold your previous home.

I hope this helps.

Kind regards,

Personal Division
Service to support compliance"

I hope this reassures rather than confuses....
 
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Minidminxx said:
Hi Peter, I have been advised, as I am in the same position as you, the most tax efficient always is to sell you property while you live in it or before you move country.

Keep us updated on how your sale goes.
Click to expand...
You’ve been advised incorrectly then. There’s 12 months’ grace in both Ireland and the UK.
 
Minidminxx said:
Hi Peter, I have been advised, as I am in the same position as you, the most tax efficient always is to sell you property while you live in it or before you move country.
Click to expand...
The best time to sell is when you get the best price or at least a very good one.
 
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