Tax Lowdown - Waterloo Sunrise for a Lucky Few

“Non-residents who dispose of a UK property are not liable for capital gains tax, provided they meet the requirements for Residency as set out by HM Revenue & Customs (HMRC).

Currently there is no definition of residence in the UK Taxes Acts and the guidance that is available is a mix of HMRC’s own internal guidance and case law. Those who own buy-to-let property in the UK, have no links with the UK and have not spent time in the UK should not have a problem asserting that they are non-resident.

“For those who do have links, have spent time in the UK and/or use the property for occupation while there, establishing that they are non-resident for UK tax purposes has become a murky area. “The most important point for an Irish tax resident rests with their obligation to declare their worldwide income as it arises and any gains as they accrue. If an Irish tax resident disposed of a property in the UK, making a gain that was not iable for tax in the UK (assuming that they passed as a non-resident), they would still be liable for the gain made in the UK under Irish rules.”