Wiggy

Hi Carrick A very similar situation to my brother, which I helped him with. Assuming a 50/50 split with your wife:- 1. Your wife will declare her 50% this Capital Gain on her tax return. She will need to ensure the appropriate pages are included, specifically foreign Capital Gains and Relief for Foreign Tax paid. She will need the 50% cost, sale proceeds and disposal costs. This will give her a a gain. UK CGT will be applied. If the Irish Tax suffered is greater than this amount, she will have to pay the difference. If Irish tax is greater than the UK tax, unfortunately, a refund is not available. Use exchange rates in force at the time of each transaction for sterling equivalent. 2. Unfortunately, to declare your share of the gain, you will have to register for self assessment and complete an income tax return, on the same basis as your wife. You will have to fill in the tax return fully, not just the Capital Gain, so the correct marginal rate of CGT, is applied to the appropriate amount of your gain.

I am in the process of making some capital improvements to my former Private Residence, before selling it, which I believe will increase the sale value. In fact the improvements are actually needed to make the property sellable. The property was my Private Residence for 10 years and by the time of sale, will have been owned as my non Private Residence, for 10 years. When calculating the Capital Gain Private Residence Relief, should the improvements, be added to the base cost of the property and Private Residence Relief and the chargeable gain, be calculated on that figure, or should the improvements be deducted after the gain has been worked out on the base cost and Private Residence Relief applied?