I've around 50k sterling in cash sitting in a Stocks and Shares ISA in the UK having worked there for the last 10 years. This is probably a stupid question, but I'm moving back to Ireland this year and wondering whether, if I keep the account active and invest, tax will be due on any future income once I'm making a tax return in Ireland.
All I can see on the broker's website is that once I emmigrate, any income or gains are shielded from UK tax.
I could be wrong but as far as I know you can no longer invest, but the money that is currently in the ISA can continue to accumulate profits.
Probably best asking or searching on reddit - r/ukpersonalfinance
I'll probably be facing the same dilemma at some stage, not looking forward to it! Maybe set up some sort of home address in NI to continue reaping the benefit of a generous tax system.
ISA has no relevance for Irish tax purposes, especially if you are Irish origin, i.e. domiciled. If you have any latent gains ont he portfolio in the ISA you shoukld crystallise them before coming back to Ireland as otherwise the gain from original base cost will be taxable here at 33%.
Pretty much what I thought. I'd sold everything back in Jan/Feb for a small gain, so everything is sitting in cash. I'll be moving within the next couple of months.
So as I understand it, there is zero tax benefit in keeping the finds there?
EDIT: Is divident income treated the same?
Depending on when you are moving to Ireland you will need to exercise caution. Any gains arising on disposals in Jan/Feb 2022 would be subject to Irish CGT if you spend more than 183 days here during 2022 as you would be resident here for the full tax year. Split year treatment only applies to income from employment meaning that UK employment income would not be taxable here if it arose prior to the date of your arrival irrespective of whether you are resident. Capital gains and investment income is treated differently.