Settling in Northern Ireland, rather than Republic, to cut tax
mugston
Forumite 19 Posts
in Cutting tax
UK is far more tax friendly than Republic of Ireland (estate tax aside).
Below are the differences, please correct any mistakes.
Any constructive input is appreciated.
ETFs: Taxed at 41% in ROI, with a "deemed disposal' every 8 years. Treated like holding standard shares in UK, taxable only on sale with no deemed disposal rule.
Yearly tax free ISA allowance; UK £20k, ROI zero (unless the investment is through the govt run state savings - they have fixed rate bonds only).
CGT yearly tax credit: UK £12.3k, ROI €1,270
CGT rate (if this is only taxable income): ROI 33%, UK 10% up to £50.270, 20% over £50,270
Ceasing residence (possibly to take up residency in a country that does not tax asset disposal): UK - do not satisfy UK residency requirements the year of disposal. ROI - do not satisfy residency requirements for year of disposal, and the 3 years preceding this. Otherwise one is "ordinarily" Irish tax resident and must pay CGT in ROI.
Estate tax: ROI €335k tax free per child, then taxed at 33%. UK £325k tax free per estate holder, then taxed at 40%
Below are the differences, please correct any mistakes.
Any constructive input is appreciated.
ETFs: Taxed at 41% in ROI, with a "deemed disposal' every 8 years. Treated like holding standard shares in UK, taxable only on sale with no deemed disposal rule.
Yearly tax free ISA allowance; UK £20k, ROI zero (unless the investment is through the govt run state savings - they have fixed rate bonds only).
CGT yearly tax credit: UK £12.3k, ROI €1,270
CGT rate (if this is only taxable income): ROI 33%, UK 10% up to £50.270, 20% over £50,270
Ceasing residence (possibly to take up residency in a country that does not tax asset disposal): UK - do not satisfy UK residency requirements the year of disposal. ROI - do not satisfy residency requirements for year of disposal, and the 3 years preceding this. Otherwise one is "ordinarily" Irish tax resident and must pay CGT in ROI.
Estate tax: ROI €335k tax free per child, then taxed at 33%. UK £325k tax free per estate holder, then taxed at 40%
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Income tax rates are similar, but because of the absence of personal allowances in Eire, and the much lower tax credits compared to the UK, the actual level in Eire is higher.