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Question
I am living in Newry and have recently sold an Irish investment residential property that I acquired in Dundalk in 2004. Am I exposed to an Irish tax liability on this sale and if so, am I able to claim relief for any expenses I have incurred selling the property?
Answer.
As the property is located in Ireland you will be exposed to an Irish Capital Gains Tax Liability (CGT) on any profit from the sale of the Property. Any tax paid in Ireland may be allowed as a deduction against any UK tax you may also be liable to on this sale.
Expenses incurred in relation to acquiring and disposing of the property, for example, solicitor and auctioneer fees are allowed as a deduction. It may also be possible to claim a tax deduction for any enhancement expenditure incurred on the property, for example, any extension costs. The first €1,270 of the gain is exempt from Irish Capital Gains tax, with the remaining gain chargeable at a rate of 30% for disposals after the 7 December 2011 or 25% if before this date. The due dates for payment of any CGT to Irish Revenue commissioners, was the 15 December 2011 for disposals between 1 January – 30 November 2011 and, 31 January 2012 for disposals in December 2011. Failure to make payment by these dates will result in interest being applied to the outstanding amount 0.0219% per day. The disposal will need to be returned on your 2011 Form 11 Irish personal tax return, or alternatively, it can be returned to the Revenue Commissioners on the specified CGT1 form by 31 October 2012. The details of the sale will also have to be included on your UK personal return for 11/12, due to be submitted to HMRC by 31 January 2013.
The advice in this column is specific to the facts surrounding the questions posed. Neither FPM Accountants LLP nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.
Email m.mackin@fpmca.com
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