Capital gains on Irish property while working overseas

jmw236 · 12-09-2017 1:23pm #1

I bought a house in Ireland in 2006 and lived in it for 3 years. I was then made redundant and couldn't find work in Ireland. I moved overseas for work while renting my home in Ireland. It's been rented since 2009. I rent a property overseas and was wondering would I be liable for capital gains tax for my home in Ireland if I sold. If so can I avoid paying it if I move back to Ireland and lived in it for a period of time before selling it?
Many thanks for your help.

Geuze · 12-09-2017 2:35pm

No, as the time spent as PPR and non-PPR is apportioned.

Peregrinus · 13-09-2017 3:09am

If you sold it tomorrow, after owing it for 11 years, 3/11ths of your gain would be exempt because it was your PPR for 3 years out of 11, and the remaining 8/11ths would be subject to CGT.

If you came back, and lived in it for say another five years, then that would be a total ownership period of 16 years, of which (3+5=) 8 years would be PPR and 8 years would not be. So in that situation you'd pay CGT on 50% of the gain.

Mind you, if you bought a house in 2006 and sold it today, it's quite possible that there'd be no gain, in which case you wouldn't have to worry about CGT.

Robert McGrath · 13-09-2017 6:20pm

Talk to a tax advisor, OP.

You may exempt from CGT if you move back in before selling.

Make sure you mention Section 604(5) of the Taxes Consolidation Act 1997

Capital gains on Irish property while working overseas

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