CGT or otherwise on UK Apartment

[gonealongtime]

an elderly relative, who now lives in old aged social housing in Ireland, recently sold a UK apartment. It was a an investment from 20 years ago and was like a noose around the neck for a long time. The sale was very protracted. The apartment was rented out for years but a good few years was hard to find renters. The apartment cost 220,000 pounds sterling, and was sold for around 180,000 pounds/sterling. There was no mortgage on the apartment, but no profit was made on the sale. There was no capital gain through the sale, but if moving proceeds from UK to Ireland bank account, will they need to prove purchase price and sale price for revenue? appreciate any advice.

thanks.

 

[ClubMan]

They probably need to make a CGT return for the sale but no tax will be due if it was sold at a loss.

Capital Gains Tax (CGT) on the disposal of an asset

This page explains what Capital Gains Tax (CGT) is and the CGT rate that applies

www.revenue.ie

They can offset the loss against future capital gains if applicable.

 

[T McGibney]

In the circumstances, the bank may well ask verbally for confirmation of the source of the funds but otherwise it's way beyond their remit to police customers' CGT compliance.

 

[gonealongtime]

hi all, thanks for the replies. much appreciated

 

[ClubMan]

In the circumstances, the bank may well ask verbally for confirmation of the source of the funds but otherwise it's way beyond their remit to police customers' CGT compliance

Yes, sorry - I didn't mean to imply that the CGT return would be needed by the bank to allow the transfer of the funds but I can see how I may have given that impression.

 

[T McGibney]

No worries, @ClubMan, I made that point in reference to @gonealongtime's question "will they need to prove purchase price and sale price for revenue?" as sometimes people overthink the bureaucracy involved in banks' anti-money laundering processes, especially when large sums cross borders.