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Selling Property in the UK + Tax in Ireland

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  • 05-01-2006 3:45pm
    #1
    civic
    Closed Accounts Posts: 41 ✭


    Hi,

    Just wondering if any of you know anything about the tax implications when selling property in the UK. I am an Irish resident, bought a flat in London a few years ago for around £115k. It is now worth £170K. If I was to sell this property do I have to pay tax in the UK and Ireland or just Ireland. From what I can see it looks like I will have to pay 20% of my profit i.e. £55 here in Ireland?

    Are there any other fees that people are aware of.


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    #2
    posiedon
    Closed Accounts Posts: 87 ✭✭posiedon


    You should check the revenue.ie website.
    With shares they place an inflation index on the profit.
    You would look up what your original 115,000 is in todays money and you would also have to allow for exchange rates etc....

    You might find that you only have to pay 20% on 35 or 40K then.
    To be honest that's not too bad. If you have any receipted expenses these can also come off the profit first (Costs money to sell too!).


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    #3
    Reyman
    Registered Users Posts: 1,297 ✭✭✭Reyman


    Poseidon's right - the capital gains liability was based on gains less the accumulated inflation up to about two years ago when the index linking element was removed. If you held the property for 5 years they'll allow you index linking for say 3 years and no linking for two years.

    You then work out the liability at the current 20% rate on the reduced total gain.

    Be careful of the Revenue though - they're going to ask you what income you made from the flat over the years and if you haven't declared it they'll charge you a whack of penalties and back tax and interest till you're wishing you never bought the place.


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