Capital Gains Tax - Query!

L

Lucia

Guest
Query - I bought a house as a first time buyers 4 years ago and it was my Principle Private Residence. However, I bought another house 1.5 years ago and did not pay stamp duty as it was under 125 sqm and was in a new development. I put my original property ( the one i bought 4 years ago) up for sale 6 months ago and moved into my new house. It has only now come to sale agreed. Can anyone please advised if I am liable for CGT? Thanks. I did not let/rent any of the properties nor have I sold any properties in the past.
 
Lucia said:
However, I bought another house 1.5 years ago and did not pay stamp duty as it was under 125 sqm and was in a new development.
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You should have paid SD on this since it was not an owner occupied PPR as you already had one. This SD liability is outstanding. Your solicitor really should have apprised you of the facts here. You need to sort this liability out ASAP.
I put my original property ( the one i bought 4 years ago) up for sale 6 months ago and moved into my new house. It has only now come to sale agreed. Can anyone please advised if I am liable for CGT?
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No - as long as it was always your PPR and you sell it within 12 months of vacating it.
 
ClubMan said:
You should have paid SD on this since it was not an owner occupied PPR as you already had one. This SD liability is outstanding. Your solicitor really should have apprised you of the facts here. You need to sort this liability out ASAP.
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I'm not sure this is true from the facts given. If the OP always intended it to be her PPR and didnt rent it out then why would she be liable for SD on it?
 
A person is entitled to take a reasonable time (I think 2 years) to transfer houses. You do not have to have one sold before you buy the other to avail of the relief.
I think that all is well.
 
Vanilla said:
I'm not sure this is true from the facts given. If the OP always intended it to be her PPR and didnt rent it out then why would she be liable for SD on it?
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woods said:
A person is entitled to take a reasonable time (I think 2 years) to transfer houses. You do not have to have one sold before you buy the other to avail of the relief.
I think that all is well.
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As far as I know if you have a PPR and buy another property which does not become your PPR immediately (and certainly before c. 18 months have elapsed) then you are liable for SD on the second purchase. Where does that two years come from? Are you perhaps thinking of the 12 months that you have to dispose of a former PPR before it becomes liable for CGT?
 
No I think the OP is entitled to a reasonable period in which to move from one house to the other. In any case we don't even know if the new house was fit for immediate occupation or whether it was in the course of being built. Either way I don't believe in the circumstances outlined that the OP should have paid investor sd on the second purchase.
 
My understanding of Lucia's post is that she bought the first PPR 4 years ago. Bought another property (intended PPR) 1.5 years ago. Moved in 6 months ago and put first PPR up for sale. You are allowed 12 months to sell your PPR before a CGT liability arises. IMO she has no liability. Also she does not have to pay stamp duty on second property as it is a new build under 125 sq.m (?) and she intends to live in it as an owner occupier. She does not have to pay stamp duty clawback on first PPR either as she never rented it and only moved out to occupy new PPR.
 
ClubMan said:
Can somebody point to authoritative details of this "reasonable period"?
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I can't and don't have the time to spare to try to look this up. Can you point to authoritative details of your conclusion that the OP should pay s
SD?

I do know that there is no time limit indicated in the revenue certs in deeds which is where you certify to the Revenue that you intend to use the new house as your PPr.
 
Thanks guys for all the advice & info outlined - most helpful and appreciated.
 
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