UK CGT for Non Residents



I am resident in ROI and have 2 rental properties in Northern Ireland (NI), one residential and one commercial. I am now considering selling both properties and am wondering if I need to pay UK or Irish tax on these disposals. Can you please advise?




The sale of residential property in the UK by a non-resident individual has been liable to Capital Gains Tax (CGT) in the UK, from April 2015.


However, the sale of commercial property held as an investment in the UK by a non-resident individual is currently not liable to UK CGT. Please note that following the recent Autumn Budget 2017 non UK residents will be chargeable to capital gains tax on the disposal of all immoveable property in the UK from April 2019. This expands the current non UK resident capital gains tax regime from residential property to also include commercial investment property.


As you are Irish resident you are also liable to Irish CGT on your worldwide chargeable gains accruing on the disposal of chargeable assets (unless you are a non-domicile qualifying for the remittance basis). Therefore, the disposal of both of the UK properties may also be liable to Irish CGT. Please note that the current rate of CGT in Ireland is 33% and the highest rate of CGT in the UK is 28%.


Under the Double Taxation Treaty between Ireland and UK you will be entitled to double taxation relief in Ireland for any UK CGT paid on the disposal of the UK property.


The advice above is specific to the facts surrounding the questions posed. Neither PKF-FPM nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.


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