tax on lump sums sent to irish bank accounts

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guerngirl

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109
hi,
we are a married couple, both irish, who moved to the Channel Islands last summer. We are both working here and paying tax as UK/Channel Islands residents. We have saved up some funds and would like to transfer a lump sum from our Channel Islands GBP account to our Irish EUR account. Are there are Irish tax implications to us transferring this cash across to our Irish account? The funds have already been taxed in the Channel Islands (net pay from our employers).
We currently do tax returns in both the Channel Islands and in Ireland, as we have a property rented out in Ireland.
 
Interestingly, if you are resident in either of the Bailiwicks, Jersey or Guernsey, you are not resident in the UK nor are you resident in the EU, so taxation-wise you seem to be resident in an off-shore European tax-haven of Crown Dependencies.
 
There are no Irish income tax issues with transferring the funds to Ireland. Asuming you've broken Irish residency there should be no Irish income tax on the employment income as it is earned either. If you are filing a self assessment tax return in Ireland there may be a requirement to report that you have opened the account but that is it.

There could be a CGT issue on foreign exchange gains. Currency is an asset and as the funds are denominated in GBP you have a foreign currency asset. A person is liable to Irish CGT if they are resident or ord resident in the country. If you are in a treaty country, for most assets, the treaty will normally override domestic provisions and you will only have to look at CGT in the new country of residence. Which of the Channel Islands are you living in? Actually not sure if it matters as I'm pretty sure none of the Islands have treaties with Ireland that cover CGT.
 
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