gilkelly

Thank you Admin 19 and 10. This is very helpful. One last query -a Declaration of Trust would presumably need to be signed by my brothers and myself. We are geographically quite distant from one another which might make this difficult.. Would a copy of a formal Statutory declaration or sworn affidavit from me setting out the de facto position be sufficient for each of them to submit to HMRC in order to verify their proportionate share of expenses and foreign tax credit set against the Capital Gain?

Thank you Admin 19. We do not have a formal declaration of trust in place. We do have correspondence from our solicitor in Ireland to our accountant explaining the de facto joint ownership and explaining that I was progressing sale and tax matters on behalf of all the beneficiaries (my brothers and I). Would this suffice? Alternatively, could my brothers and I now draw up a declaration of trust confirming the de facto position - that we are all beneficiaries from the proceeds?

Thank you Admin 25. This seems to be at odds with the reply from Admin 21, which indicates the my brothers can claim their proportionate share of the tax paid by me on behalf of all of us.To simplify disposal (begun during Covid) Property registration, sale and Irish tax matters were all in my name. Proceeds had to be paid to me as legal owner - so all documentation is in my name including full settlement of CGT tax paid to Irish Revenue. All tax has been paid I need clarity on how HMRC will treat this. If HMRC will not accept my own and my brothers' claims for a proportionate share of foreign tax credit paid by me on their behalf, then their declaration of their share of proceeds will result in considerable further CGT taxation on them by HMRC - and the proceeds will be doubly taxed. If this is the case, I will have to declare total proceeds and total foreign tax relief in my self assessment. In which case, I presume HMRC will regard the shares of proceeds distributed to my brothers as gifts and therefore my estate will be subject to inheritance tax, should I not last the requisite 7 years. Obviously, I would prefer the former approach where we each declare our share of proceeds, but require clarity on whether HMRC will accept their claims for a proportionate share of foreign tax relief as indicated by Admin 21.

Thank you for your very full reply, Admin 21. As explained, verification of capital gains payment from Irish Revenue in my name for the whole amount. Will my brothers require a copy of this for HMRC, in order to verify their claim for their share of the foreign tax paid?

My brothers and I were equal beneficiaries in a property in Ireland inherited from our mother many years ago. We recently decided to sell the property and it was registered in my name to simplify the sale process and tax matters, while acting on behalf of the beneficiaries. The sale proceeded in my name and as legal owner, I have paid all the requisite capital gains tax to the Irish Revenue. This is at a higher rate than the equivalent in the UK. The proceeds have been equally divided between my brothers and myself. Each of us needs to report our share of the assets to HMRC. I understand that we can apportion the requisite share of the costs /expenses. I assume that we can also apportion the share of the tax paid to the Irish Revenue in order for each of us to claim foreign tax relief vis-a-vis the double tax agreement. Can you confirm? If I were to take all proceeds into my estate and then distribute them to my brothers, would these be then regarded as gifts? If so, they would be subject to considerable inheritance tax, should I not last the required 7 years - which would seem to defeat the purpose of the double taxation agreement.