CGT on UK property Irish Tax Resident

josiemay

Hi there,

I am selling a property with the view of purchaing one here. it was my primary residence for 6 years and rented for 4 there is no CGT in UK but whopper over here. approx 15k. my question is the property is furnished if i was to offer the furniture as part of the price can i reduce the asking price by say 25k and this would be the cost of furniture I would still be getting the same price it would reduce my CGT by nearly 4.2k.


any thoughts

thanks josiemay

adrianw

There is no CGT on the disposal of property in the UK?

josiemay

hi Adrianw how do you figure that what i read on revenue suggested that i had tax to pay

Alan Shore

adrianw wrote: »

There is no CGT on the disposal of property in the UK?

That's a question not a statement!

barneystinson

josiemay wrote: »

hi Adrianw how do you figure that what i read on revenue suggested that i had tax to pay

He's not telling you anything, he's asking you how you conclude there's no UK CGT due.

I'm assuming it's due to UK PPR relief...

josiemay

Oh sorry I read it as a statement!.

because of the ppr relief and last 3 years of ownership relief and also both my husband and I are on deeds and therefore we have 22k of exemptions.

whereas in ireland - we have ppr last year of ownership and only 2k of exemptions!

Mr. Incognito

Property advice is banned but filling in the gaps,

It appears you had a UK property, rented for a period that you wish to sell. If it was rented PPR CGT relief will not apply if you were not living there also

If it was a UK Property UK taxes arise on the disposal. If you are Irish domiciled, resident and intend bringing the money into Ireland Irish CGT may apply. This may be offset if already taxed in the UK

The aboves are general maybes. See a solicitor for actual advice you can rely on.

exaisle

Mr. Incognito wrote: »

See a solicitor for actual advice you can rely on.

I'd be more inclined to seek the advice of an accountant or tax consultant.

Mr. Incognito

exaisle wrote: »

I'd be more inclined to seek the advice of an accountant or tax consultant.

Tax consultant, yes.

Accountant, depends on whether they do tax.

I find the average property solicitor is more clued in to property taxes than the average accountant.

Marcusm

OP

The first thing you need to do is calculate any gain arising. If you bought for £200k in 2005 and sell for £200k in 2015, you will likely believe no gain arises. However, you need to calculate the EUR equivalent at each relevant date and then establish whether you have a gain or loss for Irish tax purposes. If your purchase was in 2005 then most likely the EUR cost will be at a higher FX rate than currently applies. Conversely a purchase in late 2008 would have been at near 1:1 as opposed to 1.4:1 as currently applies. For a property owner in those circumstances, the taxable gain would be multiples of the real gain!