CGT on UK property

[Moneyspider]

Hi, I wonder if anyone can offer advice / info? When selling a UK property which was a main residence for 12 years but has been let out a further 7 years what is the situation with Irish CGT?? I think there is no UK liability after 5 years non-residency but if resident in Ireland how is CGT worked out? I have tried to do some research and have come across various things such as Irish indexation rules (which appear VERY low for UK house price increases) but some clarity would be much appreciated on if CGT applies and how it is worked out!!!

 

[Joe_90]

Tax on UK property

Hi,

Irish CGT is due on the Gain made on the property less indexation relief.

Assuming you bought the property in 1991 the indexation factor is 1.406.
You will also qualify for Principle Private Residence Relief for the period it was your home + the last 12 months.

Eg
Sales Proceeds 300,000

Cost 1991 100,000
Index 1.406
Index. Cost 140,600
Gain 159,400
PPRR 13/19 109,064
Gain 50,336
Less annual all 1,270
Taxable gain 49,066

49,066 x 25% €12,267

 

[Breninio]

Also, if you are non Irish domiciled, the remittance basis applies to UK gains (i.e. they are only taxable if remitted into Ireland).

 

[Moneyspider]

non Irish domiciled?

Many thanks for the answers but one thing a bit confused about, what does non Irish domiciled mean? Excuse my ignorance!

 

[Joe_90]

The important issues in deciding on whether someone is taxable on a transaction depends on Residence, Ordinary Residence and Domicile.

Residence is the country where you live. To be resident in Ireland you have to spend 183 days in the country in a year.

Domicile is the Country that you consider yourself to be from. Eg an Irish born person who has lived all their life in Ireland would consider Ireland as their domicile.

A person who was born in Ireland and moved to the UK at age 21 would consider Ireland to be there domicile. With the inverse for someone from the UK. If that individual was still in the UK at age 80 and had settled there then they could have been considered to have changed their domicile to the UK.