Residential Property Price Register and CBT

Geimhreadh

Hi all,
Hope someone can help me with this.

Shortest version house bought in 2009 for €165000

Mortgage transferred solely into my name 2011.

Residential Property Price Register recorded property value at €74000 in 2011.

I am now looking at selling the property and my understanding of CGT is that it is owed on anything earned above the purchase price.

My question is does the Residential Property Price Register valuation of the property in 2011 have any baring on this?

If I sell the house for €165000 will I owe CBT on anything above €74000?

Geuze

CGT is not payable on gains made on selling your PPR.

If you bought a house for 165k, and now sell it for more, and it is not your PPR, then yes, CGT may be payable.

2011 valuation is not relevant.

Mortgage is irrelevant.

Only relevant issues are:

did you make a gain on the sale?
was it your PPR?

Geuze

If you bought in 2009 for 165k, and now sell for 165k, then no gain.

All other valuations in other years are not relevant.

Geimhreadh

Thanks all for you responses

The house has been rented out since 2011 so has not been PPR since then.

Calahonda52

Geimhreadh wrote: »

Thanks all for you responses

The house has been rented out since 2011 so has not been PPR since then.

was it your PPR from 09 to 11?

Geimhreadh

Calahonda52 wrote: »

was it your PPR from 09 to 11?

Yeah lived there for 2 years then rented it out from 2011 till 2019

namenotavailablE

The gain will be calculated as the difference between:

Sales price, net of any selling costs (solicitor, estate agent)

Less

Original purchase price in 2009
+ Purchase costs (as above plus stamp duty possibly)

The resulting gain is partially relieved as you occupied the house as a PPR for some of the ownership duration-> 2 years actual occupancy plus the final 12 months of ownership (automatically granted) gives approx 3 years out of approximately 10~11 years ownership depending on start and end dates. Thus, roughly 3/10 or 3/11 of the calculated gain will be relieved.
The remaining unrelieved gain can be reduced by an annual exemption of 1270 (assuming that you haven't used it against any other current year gains) and any CGT losses you might have from other disposals either this year or from an earlier year. The tax rate is 33% on the taxable gain.

This is the general idea- if the house sales price reflected a development premium (e.g. you achieved a good sales price because the house came with a large site offering development possibilities) there are additional considerations.

The usual 'caveat emptor' applies- the calculations should be checked by an accountant/ solicitor/ tax advisor as house sales can be expensive if the tax is incorrectly calculated.

dennyk

When you say "Mortgage transferred solely into my name 2011", what do you mean exactly? Did you purchase the house jointly with someone else in 2009 and then subsequently have them removed from the title and mortgage, or was it purchased by someone else in 2009 and then ownership (and mortgage) were transferred to you for the first time in 2011? Either of those scenarios could alter your tax situation on selling.

Also, properties are generally only entered into the Residential Property Price Register when they are sold, so if there is an entry for 2011, that indicates that some sort of change of ownership took place at that time (and more specifically that the property was sold for a purchase price of €74000 at that time).

Geimhreadh

dennyk wrote: »

When you say "Mortgage transferred solely into my name 2011", what do you mean exactly? Did you purchase the house jointly with someone else in 2009 and then subsequently have them removed from the title and mortgage, or was it purchased by someone else in 2009 and then ownership (and mortgage) were transferred to you for the first time in 2011? Either of those scenarios could alter your tax situation on selling.

Also, properties are generally only entered into the Residential Property Price Register when they are sold, so if there is an entry for 2011, that indicates that some sort of change of ownership took place at that time (and more specifically that the property was sold for a purchase price of €74000 at that time).

I purchased with a partner in 2009.
In 2011 her name was removed from the mortgage.

That's exactly why I had this worry. The house was not sold in 2011 and i do not understand why it would appear on the price registry especially for that price.

Who would have reported this to the registry when the mortgage was changed?

My solicitor says she had no part in it so could it have been the mortgage provider?

dennyk

Did you buy out her share of the property at that time, perhaps?

I'd seek advice from a tax professional about how your particular situation might affect your CGT when you sell; better to pay a bit now to get proper advice than to make a costly error based on an incorrect assumption.

Geimhreadh

dennyk wrote: »

Did you buy out her share of the property at that time, perhaps?

I'd seek advice from a tax professional about how your particular situation might affect your CGT when you sell; better to pay a bit now to get proper advice than to make a costly error based on an incorrect assumption.

There was no money transferred to her for the house. She agreed to just sign it over to me to get away from the debt.

That's why I have no clue who registered it sold for 74k or where they even got that number from.

Definitely may have this nailed down before I go anywhere near selling.

Marcusm

Geimhreadh wrote: »

There was no money transferred to her for the house. She agreed to just sign it over to me to get away from the debt.

That's why I have no clue who registered it sold for 74k or where they even got that number from.

Definitely may have this nailed down before I go anywhere near selling.

Her share was transferred to you in return for you assuming the liability to discharge the balance of the mortgage. Were you and she married? If not then, likely the base cost you will be half of the original purchase price plus whatever mortgage liability she was released from (assuming that you owned it 50/50).

Geimhreadh

Marcusm wrote: »

Her share was transferred to you in return for you assuming the liability to discharge the balance of the mortgage. Were you and she married? If not then, likely the base cost you will be half of the original purchase price plus whatever mortgage liability she was released from (assuming that you owned it 50/50).

Not married thankful.

So the 74k was the debt she owned that was transferred to me?