Cgt on UK property

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meepman

Registered User
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Hello

I have a question on CGT on a UK property sale paid in Ireland to Irish revenue on an Irish resident.
For non residents the CGT on UK property is now taken from the profit from the valuation of the property in 6 April 2015 to the date of sale?
And so CGT then paid in Ireland uses the same figures?
If that is correct then the CGT owed in Ireland is substantially lower than if the CGT was of the full gain from property date of purchase.
Have I got this correct?
 
No, unfortunately the Irish CGT liability needs to be calculated according to Irish CGT rules.

If you had sold the property before April 2015 you may have had no UK CGT liability, but you'd still have had an Irish CGT liability if resident here.

The only thing that's changed post April 2015, in reality, is that the UK are now taking a slice of the tax, nothing changes from an Irish perspective, except that now you will have a credit for the UK CGT paid against your Irish liability.
 
Irish CGT will be based on:

Sale price (converted to € at appropriate rate)
- costs on sale (converted to €)
= net proceeds

Minus the aggregate of

Purchase price (converted to €)
+ Costs on purchase (incl. Stamp duty)(converted to € at appropriate rate)
+ Enhancements expenditure(you guessed it, converted to € at an appropriate rate)(eg. the cost of an extension, or similar capital improvements).

That will give you your Irish chargeable gain.

If you have any CGT losses they'll be deducted from your gain, and you have a 1,270 annual allowance.

After all that you'll have the amount you are taxed on, at 33%. Then you can get a credit for your UK CGT paid, against this tax.

When I say to convert amounts to Euro at an appropriate rate I mean the rate at the time. Depending on relative exchange rates at the relevant times, you might find your € gain is increased or decreased.
 
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