Resident in Ireland or Northern Ireland?

T

toffee2

Guest
My wifes main residence is in Ireland and my main residence is in N.Ireland.
(I know it sounds funny but i live there 4/5 nites a week due to work )
We have a house in both. We have a mortgage in the Ireland house. Mortgage in joint names
We are now planning to sell the Ireland house after 2 years.
Theres about 35000 Euro profit.
What tax will be due on this and is it only myself that will have to pay it.
I'm assuming I will have to declare this to the UK taxman. Is the profit just halved and my wife pays none and I pay the tax on the other half ??????

After the sale we plan to buy another house in Ireland for us both to reside.

Any help please.
 
Re: What tax rules apply ?

Principle Private Residents relief applies here regardless of your residence in this situation. No tax no capital gains.
 
Re: What tax rules apply ?

Married couple can only have one home. Which one is your principal private residence?

If NI, you have a problem.
 
Re: What tax rules apply ?

It is NI. Why is this a problem ?
 
Re: What tax rules apply ?

Are you sure it's your PPR? Both you and your wife, not just you!
A married couple can only have one PPR.

This is a complex situation so professional advise would be needed to help mitigate costs.

It's a problem to the no CGT rule.

If your PPR is the NI property, you should have paid SD levels on the Ire home at investor levels and will pay CGT on the profit from the sale of the Irish property (a married couple can only have 1 ppr, so your wife also pays for her share).

Had it been your PPR you would have been exempt.
 
Re: What tax rules apply ?

OK

I didn't realise this about the one PPR. So if my PPR is Ireland, what happens if I done a tax return on capital gains last year to the north.(Where I work)
Is this wrong. Should I get this back from the UK taxman and pay it (overdue) to the Irish taxman for last year ??

Help please !
 
Re: What tax rules apply ?

On the stamp duty, if the house was bought at 175000 Euro and is under 125sq m what rate is applied to the house at investor rates ?
 
Re: What tax rules apply ?

As far as i am aware the stamp duty is 3% of whatever you paid. €175,000 * 3% = €5,250.
 
Re: What tax rules apply ?

Jockey said:
As far as i am aware the stamp duty is 3% of whatever you paid. €175,000 * 3% = €5,250.
Click to expand...
The Stamp duty is also dependant on when you bought the home and other factors will effect what you have to pay. Rather than asking for what rate you should look up the Revenue details so that you can also check what exemptions/reliefs/etc are available. Lots of links to the relevant forms/documents on AAM and easily found through google.

Given the complexity of this case I really wouldn't use a public forum, even one as good as AAM, to try and come up with your liabilities. This is certainly a case where professional advice should be used. There are too many different scenarios to deal with and without having ALL the details (a bit too much detail to give out on a public forum) things may be missed/left out.
 
I've talked with two tax advisers. One is telling me that yes a married couple can only have one residence but there are cases where this cannot be enforced and if we were declaring returns in each country we would have a case due to living arrangements. Any thoughts on this please ?
Thanks for your posts
 
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