Capital Gains Tax

I

icl

Guest
Hi
Just a quick question, i don't know if you will be able to help me, i have tried the revenue and they were of no help.

A person lived in his principal private residence from 1978 to 2000, at which point he built a new house and moved into it, however he didn't sell his original house as his daughter and her son were living in the house rent free after he and his wife had moved out, until a few months ago when she was given a council house and no longer needs to keep the house and wishes to sell it. Is he liable to CGT?

Under the exemptions to CGT according to the revenue website "a gain on a dwelling house where the house has been used as an individuals only or main residence (or, under certain circumstances, as the sole residence of a dependant relative) during the individuals period f ownership". I have not been able to find out anywhere what are the "certain circumstances"?

I appreciate it if you could help me.
 
Get professional advice. Its the only safe option when it comes to CGT. Revenue never, ever stand over "advice" given to taxpayers and will not be slow to enforce interest, penalties etc on arrears if it turns out later on that you inadvertently underpaid CGT as a result. Equally you have no comeback in relation to bad or incomplete advice from here or any similar source.
 
Already asked the revenue, they didn't seem to know. Thanks anyway guys
 
icl said:
Hi
Just a quick question, i don't know if you will be able to help me, i have tried the revenue and they were of no help.

A person lived in his principal private residence from 1978 to 2000, at which point he built a new house and moved into it, however he didn't sell his original house as his daughter and her son were living in the house rent free after he and his wife had moved out, until a few months ago when she was given a council house and no longer needs to keep the house and wishes to sell it. Is he liable to CGT?

Under the exemptions to CGT according to the revenue website "a gain on a dwelling house where the house has been used as an individuals only or main residence (or, under certain circumstances, as the sole residence of a dependant relative) during the individuals period f ownership". I have not been able to find out anywhere what are the "certain circumstances"?

I appreciate it if you could help me.
Click to expand...
 
Vendors daughter is not a dependent relative for this relief to apply so the "cirtain circumstances" is not relevant.

Thus:
Total period of ownership 28yrs
Residence for 23 yrs
Gain say 200K * 5/28 = 35,714 (taxable)

I'll second the previous posters that the vendor needs actual professional advice before proceeding. This can't be done on the cheap (by vendor).
 
Gain say 200K * 5/28 = 35,714 (taxable)
Click to expand...

Gain say 200K * 4/28 = 28,571 (first 12 months after moving out is not included for CGT purposes)

Also don't forget about inflation indexation multiplier relief. See here. Scroll down to Appendix 1 page 37
 
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