Capital Gains Tax on House Sale

bullockshaver7

Hi all,

I own a house in Ireland and currently live abroad, I am aware that if I sell the house while I am living in it and it is my primary residence that I will not pay any capital gains tax. If I am living abroad, am I liable to pay capital gains tax on any profit made from the house sale?

Also I would like to know if I were to move back home for a couple of months to avoid paying this tax, how long would I need to be living in the house for? Would it for example work if I were to live in the house for 6 months, work in Ireland and pay PAYE tax etc, would this qualify me to not have to pay the capital gains tax?

SureYWouldntYa

Depending how long you lived there you can claim Principal Private Residence relief for the period you did live there

If you moved back it would just add to this period, it's a calculation on period of occupation rather than qualifying or not

E.g. if the chargeable gain is €100k, and you lived there for 7 out of 10 years since you bought, your gain would be reduced by 8/10ths (you are always given the last 12 months as part of the calculation) to €20k

If you move back and stay there for a year you might then have the gain reduced by 9/11ths, reducing your taxable gain to €18k

bullockshaver7

Thanks, so it's a pro rata type calculation

SureYWouldntYa

Yes it is, between that and the fact the last year counts as occupied it's quite a fair relief

StevenToast

If you have moved abroad for work purposes and move back...it may be entirely exempt..

You should seek professional advice...