CGT Query

U

Unregistered

Guest
Hi,

I bought a property in Dublin as a single man. Lived in it for 4.5 years. I bought second property (with my wife) and moved out of Dublin - this then became our PPR. As my job was still in Dublin and I would stay in the house 2/3 days a week and we were unsure of what we would do with the Dublin property we changed it to an interest only mortgage and retained it. In the meantime my wife became pregnant. I was aware of the 12 month rule but between sleepless nights and nappies the Dublin house slipped on our priorities. Approx 12 months after we had moved out of the Dublin property we decided to sell. We sold the house fairly quickly but that sale fell through so in the end it took us another few months to sell it again. All in all I calculate I am liable for 9 months CGT which will amount to approx €2K.

My question is - is it worth my time trying to explain the situation to revenue in the hope that they will let me off some/all of the CGT ?

Your's hoping!
 
Unregistered said:
My question is - is it worth my time trying to explain the situation to revenue in the hope that they will let me off some/all of the CGT ?

Your's hoping!
Click to expand...

No. You have to pay what you have to pay.
 
Hold on................

Clearly the issue is one relating to non occupation.

Specifically there is a clear exemption for non occupation if it was necessitated by your employment. Check the Revenue guide to CGT where they refer to this. The implication being that at the same time you could therefore have the other house as your PPR.

Revenue will know about this, but get your facts marshalled first ..will employer back the story up?
 
My guess- in a situation like yours where you own 2 houses -is that you must nominate one as your principal private residence. No CGT would be payable on a disposal of that. The other house would be treated as an investment property.
I think (and this is something I'd say you need to clarify) the fact that you retained the Dublin house instead of selling it when you moved to the country automatically 'transformed' it into an investment property at that date- or that's how I'd guess the Rev Commsrs will view it. Now that you've sold it, CGT will be due on the difference between the market value at that date (which should be higher than the original purchase price of it given the way house prices are increasing) and the sales proceeds.
I'm not sure but I don't think it's possible to use the "necessitated by employment" rule to try avoid CGT on the sale of your investment property. That would only apply to the sale of your PPR as - in my understanding- this rule allows you not to occupy your PPR for periods (due to employment situation) and avoid CGT on the sale of the PPR- this is NOT what you're doing, as you are selling the property which isn't your PPR.

Still, it's worth a shot checking it out professionally.
 
Lets be clear .. the non occupation aspect assumes that there must be another property as the PPR otherwise the non occupation aspect means nothing.
 
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