Capital gains tax-have been renting out PPR

A

april2006

Guest
Hi
I purchased an apartment in Dublin in 1993 and lived there until 2003 when I moved to England. Since then I have lived with my partner and we have no formal arrangement re rent. My property in Ireland has been rented out since August 2003. We have recently put a joint deposit on a house in England and my query is should I decide to sell the property in Ireland how is the capitla gains tax calculated ie is it from 1993 when I purchased the property, 2003 when I left the property or 2006 when I purchased the property in England
Thanks
 
Yes, it is from when you purchased the property, 1993, but is is prorata to number of years rented less 1 to total number of years of ownership. In your case this would be, roughly, (3-1)/13 or 15% of gain less your allowance of 1,270 euro would be liable to tax at 20%
 
Also if your job necessitated you to move to UK that part may make most of the gain disappear.. if you stay in one night you might get the last 12 months as well.
 
Don't forget about your buying selling expenses stamp duty if paid and any capital improvements made (extension etc) can also be deducted.

On a seperate issue in relation to rental income I take it you understand your liability to tax in relation to rental income. See [broken link removed]

Unless you have appointed an agent in ireland you tenants should deduct tax at 20%. See "What if Rents are payable to a non-resident landlord?2 in the above link
 
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