Hi All,
Hopefully someone can answer my question(s). I benefited from PPR relief on the family home with respect to CAT subject to revenue's conditions. One of them is that I must reside in the dwelling-house for 6 years from the date of the gift or inheritance. The actual words are:
the recipient must continue, except where such recipient was aged 55
years at the date of the gift or inheritance or has died, to occupy that
dwelling-house as his or her only or main residence for a period of
6 years commencing on the date of the gift or inheritance. Where the
dwelling-house is directly or indirectly replaced by other property, this
condition may be satisfied where the recipient continuously occupied
both properties as his or her only or main residence for a total period of
6 out of the 7 years commencing on the date of the gift or inheritance.
A recipient absent during any time through working abroad is
considered to remain in continuous occupation of that dwelling-house.
Note: If the dwelling house or any part thereof is sold or otherwise
disposed of within six years of the date of gift or inheritance the exemption
from tax may be withdrawn.
My questions:
- Can I sell the dwelling house and buy a replacement dwelling house somewhere else provided I meet the '6 out of 7 years' requirement? I've highlighted that part in bold because I am unsure of how to interpret it as in I would interpret that to mean that you can replace the PPR with another PPR but that interpretation seems to conflict with the note at the end.
- Am I precluded from buying an investment property for the 6 year period? For example, am I allowed to buy a studio apartment & let it out, with the intention of moving there once 6 years has passed?
- If the answer is no to the above, and I sell anyway, am I liable to pay for the full 20% tax relief or only a weighted portion of it? (it has been almost 2 years since the date of gift/inheritence)
- I presume, as I have a property I have forfeited my first time buyer status and benefits?
Thanks in advance - I hope there is someone on here with a legal background that might know.
Cali
Hopefully someone can answer my question(s). I benefited from PPR relief on the family home with respect to CAT subject to revenue's conditions. One of them is that I must reside in the dwelling-house for 6 years from the date of the gift or inheritance. The actual words are:
the recipient must continue, except where such recipient was aged 55
years at the date of the gift or inheritance or has died, to occupy that
dwelling-house as his or her only or main residence for a period of
6 years commencing on the date of the gift or inheritance. Where the
dwelling-house is directly or indirectly replaced by other property, this
condition may be satisfied where the recipient continuously occupied
both properties as his or her only or main residence for a total period of
6 out of the 7 years commencing on the date of the gift or inheritance.
A recipient absent during any time through working abroad is
considered to remain in continuous occupation of that dwelling-house.
Note: If the dwelling house or any part thereof is sold or otherwise
disposed of within six years of the date of gift or inheritance the exemption
from tax may be withdrawn.
My questions:
- Can I sell the dwelling house and buy a replacement dwelling house somewhere else provided I meet the '6 out of 7 years' requirement? I've highlighted that part in bold because I am unsure of how to interpret it as in I would interpret that to mean that you can replace the PPR with another PPR but that interpretation seems to conflict with the note at the end.
- Am I precluded from buying an investment property for the 6 year period? For example, am I allowed to buy a studio apartment & let it out, with the intention of moving there once 6 years has passed?
- If the answer is no to the above, and I sell anyway, am I liable to pay for the full 20% tax relief or only a weighted portion of it? (it has been almost 2 years since the date of gift/inheritence)
- I presume, as I have a property I have forfeited my first time buyer status and benefits?
Thanks in advance - I hope there is someone on here with a legal background that might know.
Cali