capital gains tax

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batty

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Hi all, I hope somebody can help me on what my Capital Gains obligations will be, story is;

Bought new house (house A) in May 2006

Retained previous house (house B) as an investment property

My circumstances have now changed, i now wish to sell new house (house A) and move back to previous house (House B)

I have not rented out House B since May.

I expect (fingers crossed) to make a profit on my May purchase price on House A.

What if any CGT am I liable for??

thanks in advance.
 
If you sell house A (new house) capital gain would be selling price plus costs, less purchase price, less 1275 allowance ( if memory serves) @ 20%.

If you did not pay stamp duty on house A there may be a clawback.

House B was your PPR and you are allowed to own it for a further 12 months, after you leave before capital gains tax is charged on sale.

There are other threads with more detailed information on this topic, I'd do a search if I were you.
 
liteweight said:
If you sell house A (new house) capital gain would be selling price plus costs, less purchase price, less 1275 allowance ( if memory serves) @ 20%.
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"Selling price plus costs" ... Which costs would be added to the selling price to calculate CGT?
 
whathome said:
"Selling price plus costs" ... Which costs would be added to the selling price to calculate CGT?
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AFAIK, Incidental costs arising from the sale, such as legal fees, advertising etc. I assume an estate agent's fees are also deductible. There is indexation depending on the age of the property. Also any major improvements, such as an extension are added to the original purchase price.

Not too sure about this but I think if you're a married couple then the cgt allowance of 1270 is doubled.
 
Surely if you've been living in House A since you purchased it in May 2006 then its your PPR and you qualify for PPR relief??
 
liteweight said:
AFAIK, Incidental costs arising from the sale, such as legal fees, advertising etc. I assume an estate agent's fees are also deductible. There is indexation depending on the age of the property. Also any major improvements, such as an extension are added to the original purchase price.

Not too sure about this but I think if you're a married couple then the cgt allowance of 1270 is doubled.
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In that case would it not be "selling price less costs" rather than "selling price plus costs"?
 
Lorraine B said:
Surely if you've been living in House A since you purchased it in May 2006 then its your PPR and you qualify for PPR relief??
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AS lorraine says House A is my PPR - can I qualify for PPR relief on house A?

I remortagaged House B with an Investment mortgage.
 
batty said:
AS lorraine says House A is my PPR - can I qualify for PPR relief on house A?
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"PPR relief" in what sense? CGT - yes in respect of the period of time that it was your PPR? If the property was ever rented out then some portion of any eventual resale gain may be assessable for CGT. Owner occupier mortgage interest tax relief? Only if the mortgage secured on this property is being used to purchase or renovate this property. Something else?
 
ClubMan said:
"PPR relief" in what sense? CGT - yes in respect of the period of time that it was your PPR? If the property was ever rented out then some portion of any eventual resale gain may be assessable for CGT. Owner occupier mortgage interest tax relief? Only if the mortgage secured on this property is being used to purchase or renovate this property. Something else?
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Thanks for all your replies so far. this is my first post, i mightn't be making myself clear..apologies.

I moved into House A (new house purchased May 06). As far as i was concerned from May 06 to date this was now my PPR.

I considered renting out House B (my original PPR) but never did. When I moved to house A I was giving myself the option of of selling House B within the 12 month CGT grace period for disposing of a first PPR or renting it out.

I paid mortgages on both houses myself, Neither house was ever rented out.

I now want to sell House A and move back to House B. (it suits me better for my changed cirumstances) If I do this House B will again be my PPR.

I suppose my question is what house will the Revenue Commisioners consider to be my PPR for the purpose of CGT or is it possible to sell A move back to B & not incur CGT.
 
batty said:
I moved into House A (new house purchased May 06). As far as i was concerned from May 06 to date this was now my PPR.
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If you bought house A, moved in and lived there as your PPR since May 2006 then no CGT applies on any resale gain as far as I know. There is no time limit on PPR CGT exemption kicking in. You might want to double check this with Revenue and/or a professional advisor but I don't see any CGT (or SD) liability arising on house A from this situation.

I presume that you were not claiming owner occupier mortgage interest tax relief on both houses' mortgages at the same time?
 
Thanks Clubman,

I was claiming Owner occupier interest relief on House A only.

House B has an Investor mortgage.

I think I'll check with a professional advisor too, to be sure to be sure!!
 
I posted the query below on the 'Another CGT' thread but got no response. Anybody here got any advice please ?

Trebledigit


Regarding (b) in TOSullivan's mail above, 'expenditure to enhance the value of a property', I am wondering what is allowable here. I have recently sold an apartment with the contents included in the price and this definitely enhanced the value of the property (or at least the price I got). I would imagine that fitting a burgular alarm and timber floors would be allowable but what else can be included ? What about kitchen white goods, wall lights, mirrors, bathroom fittings, etc. ? The Revenue guidelines rule out general maintenance such as painting but don't give a lot of other help.

Any suggestions ?

Trebledigit.
 
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