Renting House Out - PDP - CGT - HELP NEEDED

CSOSulla

Hi All,

I hope that I am posting in the correct forum.

I have a house (owned) that I have lived in as my Primary Dwelling Place for 7 years. I have just found a job abroad for 18 months and need to rent my house for 18 months.

Does this mean I will pay full Capital Gains on the property in years to come when I come to sell the house? I will be moving back and using the house as my PDP after 18 months.

Also, what rules on CGT apply in this situation?

Any help would be much appreciated!

Regards - S

Legend100

Hi,

Sorry to be somewhat unhelpful but this is a question you really do need to see an accountant about as the boards are not the best place for advice when it is the more complicated situation. (and yes to all reading who are up to speed with CGT, I know it isn't overly complicated but still is a bit for these boards)

Il try to keep it as simple as possible but I still think you should seek professional assistance.

Well, you will qualify for Principal Private Residence relief which will eliminate your liability to CGT as your pincipal private residence is exempt from CGT except for the portion of time you spend abroad. There will be a restriction in this regard and of course this cannot be estimated without knowing what you will get for the house when it is sold but since it is only 18 months it will not be very much.

Again.....go see an accountant!

Hope it helped

Extraplus

As Ledgend says, best to get professional advice. However, to set your mind at ease in the mean time below is a rough idea of what you can expect*:

Sale price of property - allowable costs (indexed if applicable)= Chargeable gain.

Chargeable gain x (Time house was not PPR/Total period of ownership)= Amount not available for PPR relief and so what CGT will be payable on.

For example sell house for 200k, allowable costs are 50k, house was PPR for 8 out of 10 years of ownership, so:

200-50= 150

150 x (2/10) = 30

30 x 20% = 6k CGT payable.

*Very rough calculation, does not take into account various other issues which may come into play.

rob accounts

"Any period of absence throughout which the individual worked in a foreign employment" is regarded as period of occupation to claim Principal Private residence relief. This only applies where the individual occupies the residence before and after the period of foreign employment.

Newaglish

rob accounts wrote: »

"Any period of absence throughout which the individual worked in a foreign employment" is regarded as period of occupation to claim Principal Private residence relief. This only applies where the individual occupies the residence before and after the period of foreign employment.

Yes but I imagine that exemption does not apply if the house is leased out?

It doesnt matter if you are leasing hosue or not during the absence from the state. it is imortant that before selling the house you will be living in it ( you come back from abroad)