This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

CGT IF MOVING TO IRELAND FROM ENGLAND

Surrey12
Posts:6
Joined:Tue Aug 25, 2020 7:47 am
CGT IF MOVING TO IRELAND FROM ENGLAND

Postby Surrey12 » Thu Mar 18, 2021 12:29 pm

Hello


If I move to Ireland from England and become resident in Ireland how is the gain on shares I bought some time ago while in England assessed if I sell them when resident in Ireland?

A. Is the sales price less the purchase price all assessed at the CGT rates in Ireland at the time of sale?
B. Is the price at date I become resident in Ireland less the purchase price assessed on UK tax rates and the rest at Ireland tax rates?

Many thanks for any help you can provide.

Best regards

AGoodman
Posts:1205
Joined:Fri May 16, 2014 3:47 pm

Re: CGT IF MOVING TO IRELAND FROM ENGLAND

Postby AGoodman » Thu Mar 18, 2021 5:09 pm

It isn't taxed in the UK unless it's a land rich company (75% of the value derives from UK land from memory). If you returned to the UK within 5 years, you may need to include the gain on a UK return but claim the exemption under the UK/Irish tax treaty - Art 14(5).

You will still have Irish taxes.

If you claim the remittance basis in Ireland then there's no protection under the treaty.

maths
Posts:8197
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT IF MOVING TO IRELAND FROM ENGLAND

Postby maths » Sun Mar 21, 2021 12:43 am

Unless I've misunderstood, the UK/Irish DTA cannot provide any relief in the event of a return to the UK from Ireland within 5 years of leaving the UK [ITEPA 2003 s576A(7)].

Not sure Article 14(5) helps.

darthblingbling
Posts:397
Joined:Wed Aug 02, 2017 9:09 pm

Re: CGT IF MOVING TO IRELAND FROM ENGLAND

Postby darthblingbling » Sun Mar 21, 2021 3:55 pm

Typically the gains article has a provision at the end that allows the UK to tax gains if the taxpayer was resident in the last 6 tax years. The Irish one I think is 3 years as it's fairly old.

maths
Posts:8197
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT IF MOVING TO IRELAND FROM ENGLAND

Postby maths » Sun Mar 21, 2021 9:59 pm

The UK/Irish DTA does provide for a 3 year period but is overridden by the UK's domestic period of 5 years [TCGA 1992 s 10AA(4)].

jvenegas16
Posts:111
Joined:Wed Aug 06, 2008 3:49 pm

Re: CGT IF MOVING TO IRELAND FROM ENGLAND

Postby jvenegas16 » Wed Mar 24, 2021 10:16 pm

How long have you been away from Ireland before returning there? Also, are you Irish domiciled?
You need to consider the tax residence rules in Ireland in order to deal with your question and where the tax liability falls.

Surrey12
Posts:6
Joined:Tue Aug 25, 2020 7:47 am

Re: CGT IF MOVING TO IRELAND FROM ENGLAND

Postby Surrey12 » Wed Mar 31, 2021 7:09 pm

Dear All

Many thanks for all your helpful replies.

I have been resident, ordinarily resident and domiciled in England for all my life so far but may be moving over to Ireland in the next year or so with some flexibility on dates which I would like to manage tax efficiently.

But have I understood correctly that, as I have been resident in UK for 5 years before the year of sale when I am classed as tax resident in Ireland then I will taxed at UK rates?

What would seem to make things a little more complicated is that the Irish tax year seems to run from Jan to Dec and UK from Apr to Mar.

So, if I am classed as an Irish resident in their tax year of Jan 22 to Dec 22 and I sold the shares in Feb 22 or May 22 could I pay UK tax on the gain both times or maybe just on the Feb 22 sales?

Many thanks again

Surrey12
Posts:6
Joined:Tue Aug 25, 2020 7:47 am

Re: CGT IF MOVING TO IRELAND FROM ENGLAND

Postby Surrey12 » Thu Apr 01, 2021 8:29 am

Hi again

Just to clarify on the point above that once I leave UK to go to Ireland I don't plan to come back to UK.

Many thanks for any extra guidance.

Best regards


Return to “International Tax”