Capital Gains Tax when selling principal residence

antiskeptic

Could anyone inform me what the capital gains tax situation would be for the following scenario?

Let's say I'm renting at the moment but buy a house for 100k and add an extension/make it habitable for 50k. At that point I can sell it for 200k or move into it myself, rendering it my principal residence.

I assume I'd have to pay CGT at 33% on the 50k profit if I sold it once it was done up. But what happens if I move in? How long do I have to occupy it in order not to have to pay CGT? Or is there some kind of sliding scale - the longer I occupy the less CGT I pay, in which case how does that work?

Thanks in advance..

anti

seamus

http://www.revenue.ie/en/tax/cgt/cgt-faqs.html

You're entitled to full CGT relief on a property if it has been your PPR since you purchased it. I assume in the case of a house that you've renovated/built, you only have to occupy the house when it's completed to be eligible for full relief.

The link above doesn't specify any minimum amount of time you need to have lived in it to be eligible for full relief - maybe this is specified elsewhere. However since your previous property is exempt for a period of 12 months after you move out, then my suspicion is that you must occupy the new property for 12 months before you can claim it as PPR for CGT purposes. But revenue or someone familiar with CGT should be able to give you an exact answer.

Mr. Incognito

Property thread advice

*Sigh.

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