Cross Border Assets

Many individuals who are resident in Ireland own investment property located in the UK. The purpose of this article is to provide a practical guide to some of the more salient capital gains and gift/inheritance tax implications which can arise in both jurisdictions for such individuals. It should not be overlooked that in some cases, typically those involving US citizens, a transaction may generate tax repercussions in a third jurisdiction. Space does not permit coverage of the various tax planning opportunities (and pitfalls) associated with the use of offshore companies and offshore trusts. It will be assumed throughout for the sake of simplicity that an individual who is resident in Ireland is not also resident or ordinarily resident in the UK under UK tax law (i.e. without reliance on the ‘tiebreaker clause’ under Article 4 of the Ireland/UK Double Tax Treaty).

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