CGT due if mother sells home to rent?

Squonk

Registered User
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For personal reasons, a few years back my mother sold her house (residence for 30 years) and moved into rented accomadation. She pays her rent with the proceedings of the house sale. I was always under the impression that she did not owe any capital gains tax based on this revenue document : http://www.revenue.ie/leaflets/cgt1.pdf that states (section 5 paragraph 1) : "A gain on the disposal by an individual of a dwelling-house (including grounds of up to one acre) is exempt in certain circumstances. The exemption is available if, throughout the individual’s period of ownership, the house had been occupied by the individual as his/her only or main residence or, under certain circumstances, as the sole residence of a dependent relative."

I hope I am reading this right in that it tells me that my mother is not liable for CGT? Can anyone confirm please? I am starting to panic now with Monday's Tax disclosure deadline approaching.
 
If the house was always her home/PPR, was disposed of within 12 months of vacating it and was never rented out then no CGT applies regardless of the fact that she moved into rented accommodation. Sounds like you are worrying/panicking unnecessarily.
 
If the house was always her home/PPR, was disposed of within 12 months of vacating it and was never rented out then no CGT applies regardless of the fact that she moved into rented accommodation.

...assuming it was not sold for development value over and above its value as a residence.

Sounds like you are worrying/panicking unnecessarily.
I agree.

Professional advice is recommended in case of uncertainty.