capital gains on house sale

[ORION123]

Confused,

I have had to move house due to work, The house i was in was my first, I bought it 5 years ago on 9/5/2002, We moved out This time last year and it has been up for sale since,i.e empty since, Hopefully We will have sale agreed soon, I have heard that there is a 12 month limit on when you move out and when it is sold, after this the tax man may want a cut of the sale price ? Is this true ?, Or Is it still regarded as my principle residence and the proceeds are capital gains exempt ? advise would be much appreciated.

 

[ClubMan]

I have heard that there is a 12 month limit on when you move out and when it is sold, after this the tax man may want a cut of the sale price ? Is this true ?

Yes. If you don't dispose of it within 12 months of vacating it as your home then some portion of any total gain will be assessable for CGT. For example if you owned it for 7 years, vacated it after 5 and then sold it 2 years later then (2-1)/7 = c. 14% of any total capital gain will be assessable for CGT. This example is done in round years but you can do it more accurately in months or days for your specific circumstances. Once you know the proportion of the overall gain assessable you can work out your ultimate liability as per the normal CGT rules as outlined on www.revenue.ie. If in doubt get professional advice.

I bought it 5 years ago on 9/5/2002

You mean 6 years ago? Or you mean 2003?

Was the property ever rented out? If so - when - just in case there's a clawback of stamp duty due as well.

 

[ORION123]

Sorry 2003