CGT - primary residence rented now abroad

M

monquest

Guest
My main residence has been rented out for a year while I was abroad (18 mths absence). Looking into CGT implications of moving back or staying away and selling. I know I saw info on AAM or on the revenue site about this situation but can't find it now. Could anyone please point me in the right direction?
 
Here is Section 604 of Taxes Consolidation act regarding the Principal Private Residence. The key for you identifies that absences connected with 'employment or office' outside the State may be exempt.


Disposals of principal private residence. 604.—(1) In this section, "the period of ownership"—

( a ) where the individual has had different interests at different times, shall be taken to begin from the first acquisition taken into account in determining the expenditure which under the Capital Gains Tax Acts is allowable as a deduction in computing the amount of the gain to which this section applies, and
( b ) for the purposes of subsections (3) to (5), shall not include any period before the 6th day of April, 1974.
(2) This section shall apply to a gain accruing to an individual on the disposal of or of an interest in—

( a ) a dwelling house or part of a dwelling house which is or has been occupied by the individual as his or her only or main residence, or
( b ) land which the individual has for his or her own occupation and enjoyment with that residence as its garden or grounds up to an area (exclusive of the site of the dwelling house) not exceeding one acre;
but, where part of the land occupied with a residence is and part is not within this subsection, then, that part shall be taken to be within this subsection which, if the remainder were separately occupied, would he the most suitable for occupation and enjoyment with the residence.

(3) The gain shall not be a chargeable gain if the dwelling house or the part of a dwelling house has been occupied by the individual as his or her only or main residence throughout the period of ownership or throughout the period of ownership except for all or any part of the last 12 months of that period.

(4) Where subsection (3) does not apply, such portion of the gain shall not be a chargeable gain as represents the same proportion of the gain as the length of the part or parts of the period of ownership during which the dwelling house or the part of a dwelling house was occupied by the individual as his or her only or main residence, but inclusive of the last 12 months of the period of ownership in any event, bears to the length of the period of ownership.

( 5 ) ( a ) In this subsection, "period of absence" means a period during which the dwelling house or part of a dwelling house was not the individual's only or main residence and throughout which he or she had no residence or main residence eligible for relief under this section.

( b ) For the purposes of subsections (3) and (4)—
(i) any period of absence throughout which the individual worked in an employment or office all the duties of which were performed outside the State, and
(ii) in addition, any period of absence not exceeding 4 years (or periods of absence which together did not exceed 4 years) throughout which the individual was prevented from residing in the dwelling house or the part of a dwelling house in consequence of the situation of the individual's place of work or in consequence of any condition imposed by the individual's employer requiring the individual to reside elsewhere, being a condition reasonably imposed to secure the effective performance by the employee of the employee's duties,
shall be treated as if in that period of absence the dwelling house or the part of a dwelling house was occupied by the individual as his or her only or main residence if both before and after the period the dwelling house (or the part in question) was occupied by the individual as his or her only or main residence.
 
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