What is & isn't a Principal Private Residence in the view of Revenue

BobbyFowler · 17-04-2022 9:36am #1

I bought a house in Ireland in 2001, moving to Australia in 2008. It's been rented out since.

I've wondered how I'd be taxed, were I to sell the property. Having looked at the Revenue website I found an interesting line,

"Absences considered as living in the property

You will be considered to have lived in your property where:

you had a job, all the duties of which were performed outside the Republic of Ireland"

Unless I'm mistaken, this seems to work in my favour and could prove to be indefinite as we've no plans to come home.

I'm wondering if anyone's gone through this process and come up against any issue?

Allinall · 17-04-2022 9:41am

Once you have it rented out, it is no longer your principal private residence.

How could it be?

your capital gain liability will be apportioned to the amount of time you had it rented out.

You will pay approximately 66% of the CGT liability.

BobbyFowler · 17-04-2022 10:54am

I'd have assumed the very same calculation as you, 66% of the CGT liability, were I to sell now.

Before posting, I searched and found a similar question that was brought up in the Irish Times.

https://www.irishtimes.com/life-and-style/abroad/will-we-have-to-pay-capital-gains-tax-if-selling-our-house-in-ireland-1.3434100

It doesn't appear as straight forward that once rented out, it's no longer your principal private residence,

"Another such qualifying period of absence, which may be deemed to be a period of occupation, relates to living abroad for work purposes for any period, irrespective of length."

It's for that reason I checked the Revenue Site, which intimated as much.

I posted here, checking to see if someone may have used this reason to qualify as a period of absence?

Xander10 · 17-04-2022 11:06am

https://www.boards.ie/discussion/2058242047/what-is-isnt-a-principal-private-residence-in-the-view-of-revenue

It has to be a condition, that your employer sent you abroad for a period to carry out existing duties, not a case of choosing to move abroad to work. Something like a secondment etc.

Shedite27 · 24-04-2022 8:47am

https://www.boards.ie/discussion/comment/118938097#Comment_118938097

That clause is if your work sends you to London for 2 years and you leave your house as is to return to at Christmas etc.

Once you start renting it and get income from it, it becomes an investment unfortunately

24-04-2022 8:50am

Last year deemed occupied as well.

What is & isn't a Principal Private Residence in the view of Revenue

"Absences considered as living in the property

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