CGT implications from the sale of a house.

davidod1

Hi Folks,

I will shortly have cash (€300,000+) from the sale of a house and I am wondering what will be the CGT implications.

A bit of background though. This house was in my name but my late mother was living in it on her own for the past 40 years. I am married and have recently had to retire from work due to the company's inability to continue to pay wages. My wife has recently also had to give up work for health reasons. Our only income is now my pension and my wifes supplementory payment - combined = €380 per week.

I have heard mention of a CGT allowance due to special circumstances such as leaving the property available for the use of an elderly parent. Anyone know anything about this?

Either way there will be cash to invest and I will also need to make it provide a supplement to my income.

Any information on the taxation situation would be very welcome.

Dave

Past30Now

davidod1 wrote: »

Hi Folks,

I will shortly have cash (€300,000+) from the sale of a house and I am wondering what will be the CGT implications.

A bit of background though. This house was in my name but my late mother was living in it on her own for the past 40 years. I am married and have recently had to retire from work due to the company's inability to continue to pay wages. My wife has recently also had to give up work for health reasons. Our only income is now my pension and my wifes supplementory payment - combined = €380 per week.

I have heard mention of a CGT allowance due to special circumstances such as leaving the property available for the use of an elderly parent. Anyone know anything about this?

Either way there will be cash to invest and I will also need to make it provide a supplement to my income.

Any information on the taxation situation would be very welcome.

Dave

Hi Dave,

Given the amounts involved you should certainly seek professional guidance on this. You are using a solicitor for the sale of the property, use them or somebody recommended by them to advise on the tax implications.


However, as a pointer of what direction to go to minimise the tax involved, principal private residence relief may apply.

Generally a person is only entitled to PPR on their main home. i.e. if you bought a holiday cottage and subsequently sold it at a gain CGT would apply. PPR also applies where the house was used as a home for a dependant relative. Assuming you came into ownership of the property subsequent to the death of your father, then for the duration of your ownership your mother will qualify as a dependant relative, and the gain on the sale of the house may be relieved in full by PPR relief.


Regards,

Past30

Past30Now

The period of ownership from the date of death of your mother to the date of sale will not qualify for PPR relief.

Past30

Mr. Incognito

I'm very sorry Dave but due to the amount involved I'm going to have to lock this.

As stated above please seek professional advice. Boards is for general discussion. 300K tax advice- we are not.