Empty house and Capital Gains Tax

Hello,

I recently sold my house. I owned it for 21 years. It’s been empty for the last four and a half years because I’ve been a full time carer for my elderly parents in a different part of the country. I wasn’t in a position to rent it out. It wasn’t up to scratch regulations wise and I had no support or advice. Then the lockdowns happened. So I derived no income at all from it in those four and a half years. I was in receipt of Carers Allowance.

Am I liable to CGT on the four and a half year period out of the 21 years I owned it? What expenses can I claim if indeed I am actually liable? Auctioneers fees, Solicitors fees and BER certificates and certain improvements… New roofline gutters? New high efficiency gas boiler? New triple glazed windows? Smaller plumbing repairs like a new circulating heat pump? (all things I had done when the lockdowns ended and Respite Care resumed and I had a week at a time to travel to Dublin to organize repairs)

Any advice appreciated!!!

Thanks for reading this far.

J&J

Any expenses related to the sale are allowed

Any expenses for repairs/maintenance are not

Some of the expenses may be classed as enhancements eg new windows and be allowable but Revenue do not provide clear guidelines as to what is maintenance and what is enhancements

The receipt or not of income is irrelevant

The period of non-residence will not be allowable for PPR relief - the rules are here https://www.revenue.ie/en/gains-gif...s/principal-private-residence-ppr-relief.aspx

Thank you so much JPD for the clarity of your reply.

I have a good solicitor, but just wanted another opinion. Am I correct in thinking that the legal fees in PURCHASING the house back in 2002 are also allowable expenses!? And also the original Surveyor fees in 2002?

My solicitor applied on my behalf for, and was granted NPPR relief from the County Council for 2012/2013. Because I both owned and lived there then.

While obviously I didn’t live in the house from 2019 onwards, it was my legal Home. I am legally only a guest in my parents home. I continue to care full time. (My four years Carers Leave expired in March 2023) Does this make any difference?

Obviously if the rules are that I am liable for CGT on the years it was empty minus certain expenses and costs then I’ll have to live with that. I did read the Revenue website but I think it doesn’t go into enough detail…

Obviously we’ll be writing to Revenue explaining these circumstances and let them decide on it, but I like to have a feel for the likely outcome in as much as I can.

I’d be delighted if you have any further advice on this and thank you so much for taking the time to make your considered previous reply.

Jack and Jill

It is madness to write to Revenue asking them to opine on this scenario, or indeed any scenario.

Claim PPR Relief in full and move on with your life. The property remained your home, you were simply caring for a sick relative. The legislation even references your ‘main residence’ which implies that one can have more than one residence, but only one ‘main residence’.

There isn’t a specific exemption for being a carer as there is for, say, being seconded away for work purposes, but I would argue that it’s covered under the ‘main residence’ point. Most of your belongings remained in your home surely? You didn’t rent it out. I’m guessing you didn’t turn the key and never go back once? But even then, I don’t think that would be fatal.

If, God forbid, I had to live in my parents’ house for a period of time to care for them, it wouldn’t even cross my mind that I’d lose any PPR Relief because my home would remain my ‘main residence’.

Jack and Jill said:

I have a good solicitor, but just wanted another opinion.

Click to expand...

Is your solicitor competent to dispense tax advice? Almost all aren't.

Gordon Gekko said:

It is madness to write to Revenue asking them to opine on this scenario, or indeed any scenario.

Click to expand...

+1

T McGibney said:

Is your solicitor competent to dispense tax advice? Almost all aren't.

+1

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It’s been suggested to me that I should consult a tax accountant. I might do that. There isn’t sufficient clarity in my opinion on the Revenue website….

Thanks for your thoughts. Much appreciated.

J&J

If I was in your situation I'd do exactly what Gordon suggested above & I wouldn't give it a second thought.

You have stated that it was effectively your main residence and as Gordon has said move on with your life. It is your PPR so no CGT

If you don't own any other property & its down as your main residence then its is counted as your PPR and you would not be liable for CGT