Selling foreign Property UK

Hi All

In the next couple of months i am moving to the US. 2 years ago i bought a property in the UK and now plan to sell it on.

Am i better off selling the property when i move to the US or while i am in Ireland.

Any advice would be great.

Thanks

Brehon

This is a tricky one - if you sell before you leave the UK, you may have UK CGT if the property is not your PPR. If it is your your PPR that would be OK, and probably no CGT payable.

However, in the US, as far as I am aware (but I'm no expert on US taxes) there is no tax relief for selling PPR (unless under a certain limit).

Your best bet is to get US tax advice. I can reccommend a US tax advisory company in London (I used to work there a few years ago, so I may be biased! - they also give UK tax advice, and can help with the lot for you): www.ustaxfs.com

I have just re-read your question.
I assume you are Irish tax resident and UK property is not your PPR.
No matter when you sell, you are not likely to have a UK CGT liability as a non-resident.

You possible will have an Irish tax liability if sold before you leave Ireland - need to take Irish advice. Also need to look at temporary non-resident rules if you sell as non-resident and not out of the country for at least 5 years. PM me if you need advice.

The US reference I gave above still holds true.

Domo - is it advisable for an Irish emigrant to sell a UK PPR before returning to live in Ireland or retaining it rented for a period? That would constitute being 'resident' in Ireland so which jurisdiction would the tax be due in?

You would need to look at all of the specifics in the equasion - foreign tax liabilities, Irish tax liabilities and income stream - sorry can't be more specific - but it depends on so many things - and what would be right for you would not necessarily be right for everyone - would depend on personal circumstances also.

If you returned to live in Ireland, you would be likely to be Irish resident from the date of your return - but you may not actually break residnece at all, depending on dates involved.

Similar with overseas country - depends if you visit afterwards, amounts of visits etc.

This is a very complex area, and you need to consider all options - and take professionald advice.