Will I have to pay capital gains?

jeronimo

Hi all,

Could anyone help with a query about capital gains tax on selling a property? The property in question was bought with my ex partner, and we lived there for just under a year before splitting up after which I moved in with my parents and she lives in a state subsidised apartment with our son. That was four years ago and since then it has been used as an occasional weekend residence (It is about two hours from Dublin, where we now live). It has never been rented out to anyone else.

Now we want to sell it, and will probably not be able to afford another property for quite a while.

Does it classify as a primary residence? I work in Dublin but I have no other property in my name, and I go to the house fairly frequently.
If it does classify as a primary residence, will I have to pay capital gains on it even if I am not going to (am unable to) invest the proceeds in another primary residence?
Would my ex have to pay capital gains on her share if she has lived in a rented (state subsidised) apartment for the past four years?

Any insights would be much appreciated!

J.

Hitchhiker's Guide to...

don't think you will have to pay tax. have a read of this from the revenue commissioners website. Give them a ring for more info:


3. What is a sole or main residence?

A sole or main residence is the residence which is your home for the greater part of the time. It does not have to be owned by you e.g. your parents’ residence may also be your sole or main residence, if you normally live there.


10. If I sell my house will I have to pay Capital Gains Tax?

No. If the house (including grounds of up to one acre) has been occupied as your sole or main residence throughout your period of ownership you will be exempt from capital gains tax on the sale.


11. What happens if I had let part of the house or used part of the house for business purposes?

Full exemption may not be due if only part of the house has been used as your residence. In this case an apportionment will be made to arrive at the exempt portion of the total gain and you will have to pay capital gains tax on the balance.

12. What happens if my property has "development value"?

Where your property has development value i.e. if it is sold for a price higher than its normal current use value then the relief from capital gains tax as outlined above is confined to what it would be if the property did not have development value.

jeronimo

Great advice Roundtower,

I've just had a look at the site and it is very interesting.

Thanks!