Query Regarding Tax on Foreign Property Disposal

[BonnieBefore]

Hi,

When calculating tax due on a foreign property sale can I use the exchange rate at time of purchase if I wasn't a resident in Ireland at that time to calculate P/L? The house was bought in GBP when I lived in UK as an investment, I sold it for a small amount and paid tax due in UK (negligble). I am now a resident in Ireland but assume my domicile as UK and therefore pay tax on global income only when remitted.

Is the P/L calculation done in GBP and then converted to Eur or should I convert purchase price and sale price at prevailing rates at the time and then calculate the rate? I guess I am asking as the latter generates a loss and therefore 0 tax.

edit: What expenses are allowed to be deducted? I understand lawyers fees can, but I had to spend money on cosmetic renovations (new carpets etc) in order to get it sale ready), can these be deducted?

 

[Gordon Gekko]

Were you Irish resident when you sold the property?

Are you “British” so to speak? (I ask in the context of domicile)

Normally, it’s the sales price in Euro less the purchase price etc in Euro, with the FX rates from those dates.

As you rightly point out, the lawyer’s fees would be allowable. The carpets wouldn’t be though.

 

[BonnieBefore]

I was resident in Ireland when the house was sold but not when it was Purchased.

I was born in the North on a UK passport. I now have an Irish passport and resident in Ireland but given I lived in the UK it seemed easier to just use the domicile rule.