Capital Gains Tax on PPR

H

hardrock

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Hello All

Would anyone be able to tell me what the position is on selling my principle private residence after having it rented out for a long number of years previously.

I bought the house in 1990 and lived in it till 1994 when i had to leave it to go with my job.

I rented out the house from 1995 to 2005, then came back and have lived in it from november 2005 to now.

I have got a new job in another part of the country and I am now going to sell the house and buy a house there, but have been told by my brother in law that I may not be able to sell it as my PPR as i havent been living in it all the time i have owned it. Is this correct. I have never owned any other house.

I would be very grateful for any advice or input on this.

Thanks.
 
When you were renting your house, were you working in Ireland or abroad?
 
Hello Nige,

I was working in ireland all of the time and returning the rental received on my tax return.
Thanks
 
If you are out of the house more than 12 months (unless employed abroad) then it is no longer your PPR until you move back in again. They will allow full relief for the capital appreciation for the period it was your PPR and tax you on the capital gain for the period you were not living in the house using house price index data. You will need an accountant to sort this properly IMO.
 
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By my calculations, you've owned the house for about 192 months and for 120 of these it was not your PPR (as you were not living there). This means, if you were to sell the house today 120/192 (62.5%) of the gain would be subject to CGT at 20%.
 
HighFlier said:
If you are out of the house more than 12 months (unless employed abroad) then it is no longer your PPR until you move back in again.
Click to expand...

this is not fully correct. If you are out of a house for up to 4 years due to employment somewhere else in Ireland and you move back to the house after that period of absence, it is treated as your PPR for all of this time.

However, if you are living away from the house for more that 4 years, while still in Ireland, none of this period counts as your PPR.
 
Thanks very much for all your replies. Yes I meant the profit on the rental income soryy about that.

I will go to see an accountant to sort it out for me. At least now i know that some of the proceeds will be liable for capital gains tax.

Thanks.
 
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