Irish Resident Tax Implications from selling a BTL in the UK

Andrew365

Registered User
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Hi All,

I am planning on selling my BTL due to long term tenant leaving. The property is worth £100-110k, purchased for £94k, with an outstanding mortgage of ~£60k. In the UK, I am subject to CGT on the price increase, however the CGT exemption is 12k so I am unlikely to have a large tax bill (need to confirm with my UK accountant). For simplicity excluding fees, I will have a lump sum of ~£50k.

I am trying to figure our the tax implications on bringing the money into Ireland? I am a tax resident in Ireland since Dec 2018, and I have been paying tax on the rental income on a remittance basis as my domicile is non-irish. I am a higher rate taxpayer, would the entire lump sum be taxed as additional income, or only the gain on the property?

Thanks,
Andrew
 
From Revenue website - [broken link removed]

CGT would be 33% of the gain ie 110-94 = 16 less credit for any CGT paid in the UK, assuming you bring the funds into Ireland as you are non-domiciled here

Capital Gains Tax (CGT) when disposing of a foreign property
When you dispose of a foreign property you may have to pay CGT in the country the property is in.
When do you pay Irish CGT?

If you dispose of a foreign property, and are resident or ordinarily resident in Ireland, you must pay Irish CGT.

You might be resident but not domiciled in Ireland. If you are, you will only have to pay Irish CGT on the money that you bring into Ireland.

You might have disposed of a UK property before 20 November 2008. If you did, you must pay Irish CGT on the full amount, regardless of your domicile status
 
From Revenue website - [broken link removed]

CGT would be 33% of the gain ie 110-94 = 16 less credit for any CGT paid in the UK

Thanks, I just found the website myself, that is a relief :))), I was fearing it would be on the whole amount.

A followup question, given I am resident but not domiciled and I leave the money in the UK for 2 years. Do I need to declare to revenue that I sold a property in 2020 or only the year I bring the money into Ireland? I have no immediate need for the cash, and may not stay in Ireland forever, so it would make sense to leave it in the UK, until my future is more certain.
 
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Sorry, I don't have an answer to that. I think it is always advisable to tell Revenue about any gains made or losses incurred, even if they are not taxable in the immediate. This alleviates any questions that might arise in the future - and who knows what the future might bring, even if you have plans to leave the country at some stage
 
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