CGT tax after Rent a Room scheme?

[budapest]

My friend is currently living in a property in Dublin and renting out three of the rooms. He pays tax on all his income from this as it is over the amount allowed for under the Rent A Room Scheme, but if he sells the property, will he be liable for Capital Gains Tax even though it's his PPR?

Thanks!

 

[ClubMan]

If the annual rental income is over €7,620 then he is not availing of the rent a room scheme and the property is classed as an investment property with all that that implies for stamp duty clawback (if rented within five years of original purchase as an owner occupier), CGT (unlike an owner occupied property optionally rented out under the rent a room scheme the eventual sale will not be exempt from CGT). I'm not sure if there is any relief in recognition of the fact that it is a rental property while also his PPR but I don't think so. His accountant should be able to advise.

 

[stuart]

He should not be paying tax on all the income
Part of his mortgage is allowed to be written off against the income as any other investment property, leaving him the remainder to claim TRS on

Also if he does sell a portion of the gain will be exempt as it is his PPR

Your friend should definetly get professional advice

[email protected]

 

[xeresod]

He should not be paying tax on all the income
Part of his mortgage is allowed to be written off against the income as any other investment property, leaving him the remainder to claim TRS

Just for clarification, part of his mortgage cannot be deducted but part of the mortage interest only may be claimed.