Capital Gains calculation on ex primary residence

[King Kong]

I bought my home in Dublin in 1999 and have now agreed to move to a new job in the country. What I would like to do is - hold on to the property in Dublin and let it out and buy a new primary residence in the country.

My question is: if I sell the Dublin property next year or later, am I liable for Capital Gains on the increased value of the property since 1999 til now - i.e. while it has been my primary residence.

I hope thats not the case but if its isn't, then how is the value of the property calculated from when it ceases to my home primary residence (i.e. now) for calculating by CGT exposure when I sell it in the future.

 

[ANC]

you are not liable for CGT for the period of time that the house was your PPR. Also it is deemed to be your PPR for the final year that you own the house, so basically if you move out today & rent out the house for a year and then sell it you will not be liable for CGT at all.
After that CGT is calculated based on the proportion of years of ownership which it was not your PPR.
If you bought the house in 1999 and move out now & then sell the house in 2009 you would have owned the house for 10 years of which 7 years would be deemed ownership (6 years to now & the final year) so the CGT calculation would be GAIN * 3/10 ie. if there was a 100,000 increase in the value of your house you would be liable to CGT on 30,000. At todays rates that would be 30,000 * 20%= 6000 CGT

 

[King Kong]

ANC - Thanks for the clear reply!! Basing the calculation on time seems a little crude but if thems the rules then who am I to argue....

 

[RainyDay]

Have a read of the sell home or keep as investment key post before you make a final decision to keep the old house.