Capitalgains Tax/Capital transfer tax

krangie

i have a house for sale in ireland i have been told i have to pay capital ganes tax to irish revenue and then capitaltransfer tax to english revenue total 40% of selling price i need advice is this correct

jbmagpie

I cant see the Irish extraditing you for non payment.

Ian_W

If you're living in the UK I would have thought you'd have had to pay CGT here BUT there is a double taxation treaty with all EU and many other countries so AFAIK you could deduct any capital gains tax paid in Ireland from your tax liability here.
CGT is a complex tax with lots of what the Revenue quaintly call "reliefs" you can claim so I would advise you to see an accountant, they can probably save you far more than their fees. BTW CGT isn't automatically 40%, it's your normal tax rate which may be lower and you don't need to report the gain until you do your tax return after the end of the tax year it arose.
HTH.

Cook_County

The answer for capital gains tax only (ie not income tax) depends on where you are domiciled. Where are you domiciled?

krangie

re domicilednot sure what that means i live in iEngland have irish passport

Chrismaths

There are three types of residence: Residence (where you are living this year), Ordinary Residence (where you usually live), and Domicile (Essentially where you come from and where you would be expected to return to eventually). You automatically acquire the domicile of your father (how quaint!) and from what you have said, I'd assume your domicile is in Ireland, in which case if you don't pay the money to the UK, you don't have to pay UK tax on it.