Am I exempt from CGT?

J

jim100

Guest
Hi,

In September of last year I moved out of my main residence (which I had been living in for over 5 years) and rented it out.
I was advised on this site at the time that if I sold that property within 12 months of renting it out, that I would not have to pay CGT.
I've tried to find out more about that (as I will need to sell) but I can't find a definitive answer.
Can somebody help me out as to whether it is true or not that in the above circumstances I am not liable to pay CGT and could someone suggest where I can find out more info. I've tried the revenue.ie site but haven't seen a reference to the above specific circumstances.

Would appreciate some information.
 
YES. YOur PPR Is ecempt from CGT,

The property is deemed to remain your PPR for the last 12 months of ownership. There once sold within 12 months of moving out you have no CGT.
 
Are you 100% sure that you will be able to complete the sale within the 12-month timeframe? If you don't manage this, given that more than 6 months have passed in the meantime, you may well find yourself with a CGT liability.
 
But only a small CGT liability
Profit after all expenses say 200,000
Lived in for 65 months
Period not owned as PPR say 14 months

Calc for CGT
Profit 200,000 * 2 / (65+12) = 5,200
Allowance ...........................1,270
Liable to CGT .......................3,930
CGT * 20 % ...........................786

You also have to make a return for the rental income even if a loss.
 
Thanks for your feedback guys.

But now I'm a little bit confused. Are you saying that if I sell within 12 months I don't have to pay any CGT but if I sell after, say 14 months, there will be a smallish amount of CGT to pay (as per the calculation)?

I'm a bit of a novice at this (I'm sure it's blatantly obvious) but would you suggest I ring the revenue to confirm or how would I do it? Do I need to go to an accountant when I sell the place?
By the way - where did the below calculation come from?
2 / (65+12)

Thanks
 
i too am in a similar situation. I bought my first property in nov 2003 for €214,000 and lived there up until last year. I bought another property closer to Dublin that i signed for in May 06 and moved into it in July 06. Then myself and my sister bought an apt together with our ssia's and that is registered as an investment property.

I now have my first house on the market hoping to sell within the 12 month period but the market is slow at the moment and I had a friend staying there just while he was moving between houses himself.

I was advised on selling my first principle private dwelling within the 12 months to avoid cgt but again no one could tell me if this was correct. The market has slowed where my first house is but rental has improved. The houses are valued around €360,000. Am I be crazy to sell now or should I hold onto the first one and declare it as a rental property. Its being lying idle for the past number of months as I couldn't make a decision.
 
Should the multiplier not actually be

2 / (65 + 14)
Click to expand...

Right as usual Clubman

In my example brings the CGT bill to approx 750

By the way - where did the below calculation come from?
2 / (65+12)
Click to expand...

The correct calc is 2/65+14

It is calculated as Period rented (14 - 12* = 2) divided by total period of ownership = 65 +14 = 79

* 12 months allowed to sell


See also Here
 
Forgot to add - don't forget to deduct costs in relation to buying and selling the property i.e. Legal & Auctioneers before calc your profit / Gain that is liable to CGT
 
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