Any Tax Implications on purchasing property with cash, prior to selling my Primary residence

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XXGCXX

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Hi

I am just wondering if anyone knows if there would be any tax implications in relation to the following situation

I currently own a home. I am looking at moving house but the property I am looking at are looking for a quick sale and not a chain and my house isn’t for sale yet. I would have the cash to buy the property. The property I am looking at purchasing requires a lot of renovation. Ideally I would like to purchase the new property with cash, immediately start to renovate it and sell my own home in a couple of months. This would save me renting during renovations. Or worse case but the new house with cash and immediately put mine on the market. Would there be tax implications doing this? Or is there a period of time that I would have to dispose of my original house without incurring any tax.

Thanks in advance.
 
No, there are no tax implications unless you rent out your own home.

Even if you buy a new house, renovate it, move into it and then put your home on the market and it takes you a couple of years to sell, you will still get the full PPR exemption for CGT.

Brendan
 
Hi Brendan,
I'm not sure that's correct, I believe you have 12 months grace to sell the old house before it becomes liable to CGT when sold. I don't think renting it out or not makes a difference.
Wrt the new house, I assume it is considered your ppr while you are renovating it?
 
Mrs Vimes said:
I believe you have 12 months grace to sell the old house before it becomes liable to CGT when sold.
Click to expand...

OK, I think that you are correct technically.

And if the OP keeps the house empty for 10 years when it's not their PPR, there would be a CGT liability, assuming there is a gain.

However, it is very likely to be sold within 12 months.

If it takes a bit longer, I don't think that Revenue would pursue it.

Even if they did, it makes very little difference.

For example

8 years as PPR - two years trying to sell it.
1 year grace
1 other year empty

Gain €100k
Exempt: 9/10ths : €90k
Liable to CGT : €10k
CGT €3,300

I very much doubt that Revenue would show any interest.
 
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