I am an Irish resident, ordinarily resident and non domiciled. I made a profit on the sale of property situated in the UK subsequent to 20/11/08 and this is now taxed on a remittance basis. Assume the property cost £60,000 (1995) and it was sold for £100,000 in 2009. If I transfer £100,000 to Ireland what is my tax liability here and do I report it as a capital gain in my 2010 tax return? What would the rule be if I transferred £50,000?
UK Capital Gain - Irish tax liability
- Thread starter Brantford
- Start date
You calculate the Gain of €40,000.
This is my understanding of the calculation:
If you transfer €100,000 (all of the proceeds), you would be taxable on the full profit in the year that you make the transfer of the funds.
If you transfer €50,000 (half of the proceeds), you would be taxable on half of the profits (€20,000) in the year that you make the transfer of the funds.
Of course, if you transfer these funds from a bank account that also holds interest etc, this complicates that calculation.
This is my understanding of the calculation:
If you transfer €100,000 (all of the proceeds), you would be taxable on the full profit in the year that you make the transfer of the funds.
If you transfer €50,000 (half of the proceeds), you would be taxable on half of the profits (€20,000) in the year that you make the transfer of the funds.
Of course, if you transfer these funds from a bank account that also holds interest etc, this complicates that calculation.
M
mercman
Guest
I thought that if you were ordinarily Tax resident in Ireland, CGT must be paid on yiur worldwide transactions whether you remit the money or not. CGT is not based on a remmittance basis = it works on a transaction basis. If the transaction occurred prior to end 2008 the Tax shoukld have been remitted in the first quartre of 2009.
I'm not an accountant so I do stand to be corrected.
I'm not an accountant so I do stand to be corrected.
M
mercman
Guest
Brantford, apologies for confusing the issue. Dban, thank you for correcting me.