Am I subject to UK or Irish property CGT laws?

G

gallon

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I was resident and lived in the UK and owned a property from 2001-2006 and currently have the property rented out there. I move back to Ireland last year basically with a view to making it permanent

I was under the impression this property upon sale would be governed by UK CGT, e.g. I am exempt from CGT as long as I sell within a certain time period (1 year of residence plus 3 years) in my case 8 years, so I have up until 2014.

However a friend of mine who returned about the same time was told that if he did not sell his property inside a year he would be subject to Irish CGT? Is this correct and if so what is the exemption period?

Also as a side note as I have not bought in Ireland am I first time buyer? As my understanding is no as I bought a property in another country correct or incorrect?

Apologies if there is a similar question elsewhere or this is the wrong forum, but if this is the case kindly point me in the right direction.

Thanks in advance.

Gall
 
If you are resident (or ordinarily resident) in Ireland, then any gain you make on the sale of property in the UK will be subject to Irish CGT. However, if you also pay tax on this disposal in the UK, that tax will be credited against any Irish tax payable.

You should also be declaring your UK rental income for Irish tax purposes (again with a credit for any UK tax paid).
 
CGT: It's a little more complex. Consider getting detailed tax advice if you are sitting on a substantial capital gain.

STAMP DUTY - you are not a FTB
 
I agree - get professional advice - you my not save any actual tax - but you will ensure that you pay the correct tax to the correct tax authority, and do not suffer any interest or penalties - it may be worth the cost of professioanl advice to do so, and save you time and complications in the long run.
 
Actually I'm declaring my rental income in both UK and Ireland, basically the amount is not taxable.

I guess the other question is am I resident here if I am paying tax here. The last legally declared residency was in the UK, even though I have moved back to Ireland I have not "changed residency". I guess its another question for a financial advisor.

Thanks for your advice.
 
Residence is based on number of days spent in a country, and some countries have slightly different rules. If you live in Ireland, I would guess that you are Irish resident, however, you can be resident in more than one country at a time.

As a rule of thumb, if you are in a country for 183 days or more in a year you are likely to be resident there, however, for example if you more than 91 days for several years in the UK, you may be treated as resident there also.

If you are concerned about your residence situation, you should get professional advice.
 
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