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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I have been resident in the UK for the last 22 years. I

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Hello, I have been resident in the UK for the last 22 years. I bought a property in Ireland in 1997 for my late mother to live in. She lived in the property rent free and upon her demise in 2020, I subsequently sold the property. The Irish Tax Authority deemed i had no tax liability on the sale proceeds as i had provided a residence for a dependent relative for 23 years. I have then remitted the funds to the UK. My question is am I liable for CGT in the UK, on these funds allowing for the appreciable difference between the purchase price and selling price of the property. If yes is there a calculator to assess the 1997 price of purchase against the 2020 sale price.
JA: Have you talked to a tax professional about this?
Customer: not yet, i am just trying to get my ducks aligned for my 20/21 self assessment submission
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: not that i am aware

You pay Capital Gains Tax when you ‘dispose of’ overseas property if you’re resident in the UK.

You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).

The Capital Gains tax-free allowance is:

£12,300

Use this link https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

Customer: replied 18 days ago.
Is there any tapering relief, given the property cost the equivalent of £140k in 1997 and realised £300k in 2001, or am I paying a flat CGT on £147,700? In short HMRC gain from something that i benefit after 25 years?

You pay on all your gain. If you were selling an assets owned before April 1982 you could use the market  value  in 1982.

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