Selling a property in London

[sarahc]

Hi,

I purchased a property in London in 2003. I then moved back to Ireland in 2006 and have since then rented the property out. I now wish to sell and look to make a profit of approximately £45,000. Can someone please explain what tax implications there are and the double taxation impact also?

Many thanks
Sarah

 

[fatmanknows]

Hi Sarah,

There are two tax issues -:

1. CGT - (Capital Gains Tax) - Paid on Profits on sale of an Asset.

UK CGT : If you are now permanently resident and domiciled in Ireland there is no UK CGTpayable on the disposal of the UK property.

Irish CGT : Payable as usual : ie 20% on profit net of all acquisition/disposal expences and anual CGT allowance.

2. Income Tax - payable on net rental income received.

UK Income Tax - pay uk income tax on net rental profits.

Ireland Income Tax - you also pay Irish income tax on net UK rental profits Less credit for any UK income tax paid on same rental profits - this may reduce or eliminate the UK tax paid.

Hope this helps