1. We purchased in the UK and released equity on our Irish property rather than mortgage in the UK, because, at the time, the interest rates were much lower here.lettermac said:I have read various threads at length on this website but have a few minor points of clarification.
Situation is this. Looking at buying an apartment in Glasgow for circa £150k. Financing the deposit from existing savings.
1. Should I look to get a mortgage in the UK or Ireland? What are the advantages/disadvantages?
2. Would I need to front 20% of the purchase price?
3. If I get a mortgage in Ireland, can I offset the mortgage interest against the my UK rental income for the purposes of my UK tax return?
4. Are allowable expenses pretty similar in the UK as Ireland.....i.e. even after my mortgage interest, can I deduct house insurance, management company subs, furniture etc etc?
5. CGT - As I am an Irish redident, I will only have an Irish CGT liability. My only tax liability in the UK will be against my rental income which in turn I can offset agaisnt my annual Irish tax return.
Many thanks,
Andrewa said:....
5. This is where I get stuck, and I'd love a definitive answer myself. I have posted in this regard previously on AAM and seem to have been told that as an Irish resident I am not liable to CGT in the UK but am, of course, liable in Ireland, at 20%. That would be great. However, when I consult both the Irish Revenue guidelines and the Inland Revenue website I'm not so sure. Does anybody have a definite YES or NO on this please?
San Martino said:The definitive position is that non-residents (of the UK) are not liable to UK capital gains tax.
This differs from the Irish situation where anyone (regardless of residence) selling property situated in Ireland will is liable to CGT on any profit made.
If I get a mortgage in Ireland, can I offset the mortgage interest against the my UK rental income for the purposes of my UK tax return?
Yes, we intend to, and our accountant has not said we cannot.
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