Hi all,
My situation is I am living abroad (Australia). I acquired UCITS ETFs in the year of my departure and also in the following years as an ordinary resident. I will be non resident from 2019 and plan to return to Ireland at an indeterminate date thereafter.
My plan was to sell my ETFs in order to take advantage of the lower CGT rate here, prior to returning. However, my attention was drawn to the following online.
I found the following online. I can't link just yet owing to post count.
Capital gains exit tax
Anti-avoidance legislation has been introduced in respect of temporary non-residents who dispose of certain assets during a tax year of non-residence for the purpose of avoiding Irish capital gains tax. It applies with respect to the 2003 tax year onwards.
For the restriction to apply, an individual must beneficially own "relevant assets" on the 31 December of the tax year of departure. These are defined as shares in a company or a right to acquire shares or other rights in a company. The market value of the relevant assets on this date must be equal to or exceed either 5 percent of the value of the issued share capital of the company or EUR500,000 for the restriction to apply.
Where an individual leaves Ireland and during a period of non-residence sells relevant assets but returns to Ireland within six tax years of departure, the individual is deemed to have disposed of and immediately reacquired the relevant assets as at the 31 December of the tax year of departure at the market value on that date. Any chargeable gain accruing must be included in the tax return applicable for the year of return.
This legislation will not apply where, as a resident of Ireland, the individual would not have been assessable to Irish capital gains tax in respect of gains on a disposal of relevant assets.
This seems to imply that if I return to Ireland within 6 years of departure I will also be subject to capital gains there also? Does this apply to UCITS ETFs? Does this apply even if I did not hold the stocks at the time of my departure (having bought them later in the tax year of departure and also in subsequent years as an ordinary resident - what about ETFs acquired as non tax resident completely?)? Lots of questions
My situation is I am living abroad (Australia). I acquired UCITS ETFs in the year of my departure and also in the following years as an ordinary resident. I will be non resident from 2019 and plan to return to Ireland at an indeterminate date thereafter.
My plan was to sell my ETFs in order to take advantage of the lower CGT rate here, prior to returning. However, my attention was drawn to the following online.
I found the following online. I can't link just yet owing to post count.
Capital gains exit tax
Anti-avoidance legislation has been introduced in respect of temporary non-residents who dispose of certain assets during a tax year of non-residence for the purpose of avoiding Irish capital gains tax. It applies with respect to the 2003 tax year onwards.
For the restriction to apply, an individual must beneficially own "relevant assets" on the 31 December of the tax year of departure. These are defined as shares in a company or a right to acquire shares or other rights in a company. The market value of the relevant assets on this date must be equal to or exceed either 5 percent of the value of the issued share capital of the company or EUR500,000 for the restriction to apply.
Where an individual leaves Ireland and during a period of non-residence sells relevant assets but returns to Ireland within six tax years of departure, the individual is deemed to have disposed of and immediately reacquired the relevant assets as at the 31 December of the tax year of departure at the market value on that date. Any chargeable gain accruing must be included in the tax return applicable for the year of return.
This legislation will not apply where, as a resident of Ireland, the individual would not have been assessable to Irish capital gains tax in respect of gains on a disposal of relevant assets.
This seems to imply that if I return to Ireland within 6 years of departure I will also be subject to capital gains there also? Does this apply to UCITS ETFs? Does this apply even if I did not hold the stocks at the time of my departure (having bought them later in the tax year of departure and also in subsequent years as an ordinary resident - what about ETFs acquired as non tax resident completely?)? Lots of questions