CGT for Non-Domicilled Irish Resident

devans2019

Hi there,

As an example. Let's say I am an Irish tax resident (in Ireland only), non-domicilled. I have no plans to leave and want to grow old here in Ireland with my family. But I have 100K in stocks, held with a US broker. I would like to bring that into Ireland, so that I can use it to make a payment towards my Irish mortgage. There is capital gains owed on these stocks, of let's say 30K.

But then I was wondering. I have my old UK bank account. If I have the 100K in stocks transferred to my UK bank account (in GBP) then no Ireland CGT is due. What I guess I'm asking is - how would people theoretically, then use that GBP balance towards Irish costs.

Thanks,
D

dennyk

If you are resident or ordinarily resident and domiciled in Ireland, you will owe CGT on any foreign assets you dispose of whether you remit the funds to Ireland or not. Leaving the proceeds from your sale of US stocks in a US bank account or remitting them to another foreign account won't exempt you from paying CGT on them in Ireland.

Also keep in mind if you are a US citizen or permanent resident (green card holder), you will also likely owe US taxes on the sale of those stocks; as they are not earned income, they don't fall under the Foreign Earned Income Exclusion.

Edit: Wait, are you saying you are *non-domiciled* in Ireland? If you reside here permanently and don't plan to leave or to return to your country of origin, you would probably be considered as having your domicile here.

Peregrinus

Denny has it. You're settled in Ireland, with your family here, with no plans to leave, and expecting to grow old here? That's pretty much the definition of "domiciled".

But let's assume you're non-domiciled. You sell your US stocks, realising a gain - no liablitty to CGT (in Ireland, at any rate). You then transfer the sale proceeds to a UK bank account - still no liablity in Ireland. You then transfer the proceeds from your UK bank account to an Irish bank account (your own, or someone else's; it doesn't matter) - that's a remittance of proceeds to Ireland, and causes the gain to become chargeable to CGT.

Marcusm

Under Irish law, a person has a domicile or origin inherited from their father at birth. Acquiring a domicile of choice requires positive action generally shown by asserting an intention to stay here permanently often evidenced by acquiring an Irish grave plot. Absent these things, Irish Revenue does not generally raise domicile issues prior to death!

As regards foreign remittances, gains are only taxable to the extent remitted here. However, you are entitled to remit capital (not being income or capital gains) tax free. Non-dons are generally advised to maintain segregated bank accounts for their income/gains as opposed to capital to permit an element of tax free remittances. Ultimately over time, accumulations of prior income and capital gains become capital.

Get some professional advice taking account of your particular circumstances.