CGT on UK House Sale.

G

Grumpy_man

Guest
We bought a house in London in Feb 1997 for 143K and lived in it until Nov 2000. I am thinking of selling it now (estimate it would be worth around 450K) and have contacted the UK tax authorities who tell me that we would not be liable for CGT there as we havent lived in the UK for the last 5 years. We moved back to Ireland around 5 years ago from another European country and live in the house that we bought here since then. So the house in Ireland is our primary residence for the last 5 years.

My question is this, if we sell the house in London are we liable for CGT in Ireland on the sale ? And if so how can I find out how much ? Is there a Tax revenue helpline that you can call in Ireland to find out before we make the decision to sell. I'm still reading the UK leaflet but cant work out if there is a double taxation situation....

Any help/advice would be appreciated.
 
You will only be subject to Irish CGT. The calculation is the same as if it was an Irish property, so you not be taxable on the portion of the gain relating to the period it was your PPR. So 3 1/2 PPR plus last 12 month exempt.

Period of ownership 12.5 years so(4.5/12.5) not taxable.
The rest of the gain subject to Irish CGT.

UK CGT does not apply due to treaty relief.

BEWARE possible increase in Irish CGT in December budget.
 
i think the rate is 19% in the UK with a personal cgt allowance of just over £10k so first £20k profit exempt if investment property owned jointly.
is it correct the personal cgt allowance is just over a €1k in Ireland ? or am i reading something incorrect ?

if this is the case, grumpy man will pay a heck of a lot more cgt now because he lives in Ireland. for example. if it suited grumpy man to move back to the UK and become resident again for say 6 or 12 months, and his UK home became his main home again then would he still have to pay cgt ?

isn't this what the UK politicians have been doing, flipping properties to avoid cgt.

maybe i have got it all wrong ?
 
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