I am just wondering about the limitations to the 7yr CGT relief.
Scenario:
Irish person living in US wishes to purchase a property in Ireland to use as a base. His PPR is in the US. He currently does not pay any tax in Ireland. He does not own any Irish property yet.
Can he avail of the relief once he pays any CGT due on disposal in Ireland or must he pay income tax in ireland to avail of the relief, in which case he has to rent the property? If the latter, for what period would the property need to be rented to avail of the relief?
The language in the Finance Act is not clear to my untrained eye (see below). I understand part B pertains to tax avoidance but I can't decipher part A.
Much obliged if someone can clarify.
4) Relief under subsection (3) shall not apply―
(a) to land or buildings to which this section applies unless any income or profits or gains derived from the land or buildings concerned in the period of 7 years from the date they were acquired by the person who acquired them is income or profits or gains to which the Income Tax Acts or the Corporation Tax Acts apply, or
(b) where arrangements (within the meaning of section 546A) have been put in place and it can be shown that relief (apart from the relief given under subsection (3)) would be less if the arrangements had not been put in place.”.
Scenario:
Irish person living in US wishes to purchase a property in Ireland to use as a base. His PPR is in the US. He currently does not pay any tax in Ireland. He does not own any Irish property yet.
Can he avail of the relief once he pays any CGT due on disposal in Ireland or must he pay income tax in ireland to avail of the relief, in which case he has to rent the property? If the latter, for what period would the property need to be rented to avail of the relief?
The language in the Finance Act is not clear to my untrained eye (see below). I understand part B pertains to tax avoidance but I can't decipher part A.
Much obliged if someone can clarify.
4) Relief under subsection (3) shall not apply―
(a) to land or buildings to which this section applies unless any income or profits or gains derived from the land or buildings concerned in the period of 7 years from the date they were acquired by the person who acquired them is income or profits or gains to which the Income Tax Acts or the Corporation Tax Acts apply, or
(b) where arrangements (within the meaning of section 546A) have been put in place and it can be shown that relief (apart from the relief given under subsection (3)) would be less if the arrangements had not been put in place.”.