Irish non-dom – does selling foreign shares within an Interactive Brokers Ireland account trigger Irish CGT?

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Phileas1969

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Hello,

I'm hoping someone with experience of Irish tax and the remittance basis can clarify a specific point for me.

I am Irish tax resident but non-Irish domiciled and hold shares in foreign companies (Canadian/US listed shares) through Interactive Brokers Ireland.

My understanding is that, under the remittance basis, foreign capital gains are generally taxable in Ireland only to the extent that the gain is received/remitted into Ireland.

My question is specifically about Interactive Brokers Ireland:

If I sell a foreign share within my IBKR Ireland account, creating a capital gain, but leave the proceeds entirely within the IBKR brokerage account and do not transfer the money to an Irish bank account or otherwise use it in Ireland, does the sale nevertheless become an Irish-taxable event simply because the brokerage account is operated by an Irish entity?

In other words, does the fact that the broker is Interactive Brokers Ireland mean that the gain is automatically regarded as having been "received in the State", even though I have not withdrawn or used the proceeds in Ireland?

Or does the remittance/receipt question depend on the proceeds actually being transferred, brought into, or used/enjoyed in Ireland?

I'm specifically asking about ordinary foreign-listed shares, rather than ETFs or offshore investment funds.

I appreciate that this is ultimately something I will get professional tax advice on, but I'm trying to establish the correct interpretation before doing so.

If anyone believes that simply selling the shares within an IBKR Ireland account makes the gain taxable in Ireland, could you please point me towards the specific Revenue guidance or legislation supporting that position?

Thanks.
 
Phileas1969 said:
If I sell a foreign share within my IBKR Ireland account, creating a capital gain, but leave the proceeds entirely within the IBKR brokerage account and do not transfer the money to an Irish bank account or otherwise use it in Ireland, does the sale nevertheless become an Irish-taxable event simply because the brokerage account is operated by an Irish entity?
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I've seen it mentioned online that IBKR should be avoided for the purpose you mentioned as the legal entity is Irish domiciled. That being said, it's heresay until you get professional advice.

You don't mention the type of share, just be aware, not all fall within the remittance basis of taxation, regardless of your domicile. Another reason to get advice.
 
Yes - (its money that's been remitted into Ireland before you invested it) it if its in an irish brokerage account and then the gain is remitted immediately on sale. You need a proper offshore brokerage to be able to take advantage of remittance basis taxation on income and gains. Even then gains is complicated as its hard to separate the gain from the original and remain compliant but thats another story.
 
Sorry, forgot to mention my stocks are individual Canadian stocks.

Can anyone recommend what actual type of Tax advisor I should be looking for when it comes to non domicile and remittance basis taxation. I live in Wexford if anyone has any recommendations of advisors near me.
 
Doesn't matter what your shares are - in that account the gain is remitted to Ireland immediately. DM sent on advisor
 
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