Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Capital Gains Tax Question

  • 26-06-2009 3:02pm
    #1
    bbam
    Closed Accounts Posts: 7,410 ✭✭✭


    Folks..
    Maybe this would be better over in Accomodation/Property but here goes..

    We built a new house with the plan to sell our origonal when it was complete.
    We moved into our new house in April but our origonal house has not sold.

    Am I right in presuming I will not be liable for CGT when I do sell my origonal house?
    Also, I have been approached by a couple to rent the house, how does renting it out for say a year affect CGT liability, some income would be better than none..

    Advice welcome...


Comments

  • #2
    indigopopz
    Closed Accounts Posts: 8 ✭indigopopz


    You can claim principal private residence relief on the sale of your house providing you occupied it for the entire period of ownership.If not,some periods of absence may be deemed occupied,if certain conditions are satisfied.


  • #3
    misspiggy40
    Users Awaiting Email Confirmation Posts: 277 ✭✭misspiggy40


    Hi there. Also worth noting is that the final 12 months that you own a residence are deemed to have been occupied by you whether you actually did or not, regardless of whether you have another residence which is now your home.

    For example;

    If you owned and occupied the house for ten years, then you rented it for one year you would still not be charged CGT(ie final year is deemed to have been occupied by you, so no charge)

    OR

    If you owned and occupied the house for ten years, then you rented it for two years you would be liable for CGT on 1/12 of your gain (ie lived in it for 10, rented it for one, deemed to have occupied it last one....although it was still rented.)

    It is also worth taking into account that when you own two properties you nominate which one you wish to be your PPR. You do this in writing within 2 years of ownership of the second property.

    I mention this because it is possible that you would make a substantial gain on one house in comparison with the other so it might be worth keeping the original one as your PPR although you live in the second. Do the maths.

    I can email you the text of these details with examples if you want to pm me in case my explainations are not clear.

    Good luck.


Advertisement