WENTWORTH provides a range of tax planning and consultancy services to our personal tax clients. We work closely with our clients to gain an understanding of their long term goals, which allows us to assist them in planning their affairs in a more tax efficient and commercial manner. We advise clients on all the major taxation heads including, income tax, capital gains tax, capital acquisitions, stamp duty and where relevant, foreign taxes.

Succession / Retirement Planning

The transfer or sale of assets as part of a succession/retirement strategy can give rise to significant taxation costs and a reduction in wealth, if not properly planned. With a succession or retirement strategy, it is important to start your taxation planning at the earliest opportunity. Careful tax planning can often substantially reduce the associated taxation costs without impacting on the objectives of the client

At WENTWORTH we have considerable experience in relation to appropriate reliefs such as:

• Annual CGT exemptions
• Gift tax thresholds
• Retirement relief
• Business relief
• Agricultural relief

Pension planning

Our tax professionals works closely with our panel of wealth management advisers to ensure that the tax relief associated with pension contributions is optimised for our clients.

Pension funds remain a tax efficient means of investment, despite the various caps and restrictions associated with pension contributions.

Income tax relief is available for individuals on contributions to approved personal pension arrangements. The amount of tax relief is more generous as you get older. There is a limit on the earnings that may be taken into account, with the current cap at €115,000. Earnings in excess of this amount will not be taken into account in calculating allowable contributions.

Self-employed workers can also claim tax relief over and above the relevant limits with appropriate pension and tax planning, through executive pension plans.

Wealth Accumulation Strategies

WENTWORTH provides advice on wealth accumulation strategies for business owners, investors and private clients. We advise on how to avail of lower income tax rates in relation to property dealing transactions and, how to maximise after-tax income to efficiently service borrowings.

We can also advise on the ownership structure for assets and the introduction of the next generation to maximise family wealth and to minimise taxation costs on future transfers.

Matrimonial Cases

Marital breakdown is an unfortunate fact of life and can extremely stressful for those involved. Our experienced team of professionals can assist and advise on financial and taxation issues that may arise as a result of marital breakdown.

At WENTWORTH we have considerable experience in relation to:

• Pension adjustment orders
• Maintenance payments
• Transfer of family home
• Inheritance and succession planning
• Statement of Net Worth
• Forensic accounting and litigation support

Residency Issues

The extent of an individual’s liability to Irish income tax depends on whether they are

• Tax resident in Ireland
• Ordinarily tax resident in Ireland
• Domiciled in Ireland.

It is important for individuals who travel a lot, or those who enter and leave Ireland regularly, to monitor their days. Planning one’s days for residency purposes can offer significant tax advantages, both in terms of being tax resident or ordinary resident in Ireland, or not being tax resident or ordinary resident in Ireland.

At WENTWORTH we can offer expert advice in relation to residency issues, such as:

• Review of days for residency purposes
• Consideration of double taxation treaty agreements
• Remittance basis of taxation
• Split year taxation
• Seafarers allowance
• Trans-border workers relief

Other relevant services include:

• Employment
• International Tax

Our experts have prepared a guide to the various residency terms used for taxation purposes.

Tax Resident

An individual is resident (“tax resident”) for Irish tax purposes if they spend –

183 days in Ireland or

280 days over two years – i.e. current and preceding tax year, minimum 30 days in each year.

From 1 January 2009, a day for residence purposes is one on which the person is in Ireland at any time in a day.

Ordinary Resident

An individual becomes ordinarily resident in Ireland if they have been tax resident here for each of the three immediately preceding tax years.

Once a person becomes ordinarily resident, they will continue to be ordinarily resident here until they have been non-resident for three consecutive income tax years.

Domicile

Each person acquires a domicile at birth which in most cases is that of their father. This original domicile is retained throughout your life, unless you acquire a domicile of choice.

It should be noted that you cannot simply abandon your domicile of origin; it can only be replaced by acquiring a domicile of choice.

Effect for taxation purposes

As a general rule, an individual who is resident, ordinarily resident and domiciled in Ireland is liable to Irish income tax on worldwide income.

An individual who is resident, domiciled but not ordinarily resident e.g. an Irish individual who returns to Ireland after many years abroad, is taxed on all Irish income and on foreign income, only if remitted to this country (until they become ordinary resident at which point they will become taxable on their worldwide income.)

An individual who is resident, but not ordinarily resident or domiciled e.g. a foreign citizen sent to work in Ireland for a few years, is liable to Irish income tax in full on his income arising in Ireland and, on his foreign employment income to the extent that he performs the duties of his employment in Ireland.

An individual who is domiciled, ordinarily resident but not resident e.g. an Irish person who leaves Ireland, is liable to Irish tax on worldwide income with the exception of:

• Income from a trade or profession no part of which is carried on in Ireland
• Income from an employment the duties of which are carried on abroad
• Other foreign income provided it does not exceed €3,810. (If it does exceed €3,810 then the full amount is taxable in Ireland, not just the excess)

In general, an individual who is neither resident nor ordinarily resident in Ireland is taxable on Irish source income only.