Trevor Sedgewick is the UK domiciled, having been born in the UK, but has lived in Ireland continuously for the last 15 years. He has made the following transactions during 2020 and is concerned about his Capital Gains Tax (CGT) position in Ireland:

a) Disposal of a French property resulting in a capital loss of €50,000 (proceeds received were €100,000). Trevor has spent €50,000 of the proceeds on a new Mercedes that he purchased in Ireland. The remaining €50,000 is held in his French bank account that he set up to collect rental income from the property and pay his local taxes.

b) Disposal of a 50% interest in an apartment located in Dublin with a chargeable gain of €50,000. Trevor’s brother Boris, who is a UK tax resident and domiciled, held the other 50% interest in the Irish apartment. Boris sold his 50% interest as part of the same transaction and also made a chargeable gain of €50,000;

c) Disposal of shares listed on the Irish Stock Exchange with a chargeable gain computed of €10,000;

d) During 2020 Trevor also remitted proceeds of €20,000 from the disposal of a UK property that he sold in July 2012. The chargeable gain was €50,000. The CGT rate at the time of the disposal was 30%.

e) In 2019, Trevor sold a property in Spain for €200,000 making a gain of €50,000. On 6 November 2019, he remitted €40,000 into Ireland. On 5 December 2020, he remitted €30,000, leaving €130,000 in a Spanish bank account. The CGT rate in 2019 was 33%.

Requirement:

Advise Trevor and Boris, for each of the five transactions above, whether their chargeable gains are subject to Irish CGT and whether any loss relief is available. You should ignore the annual exemption in your answer.

Answer rating: 100% (QA)

a Trevor Sedgewick will assess his income globally and pay tax Hence Loss suffered on sale of french ... View the full answer