Family Home Declaration in Conveyancing - what is it?

K

kfc

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Hi, I'm new here and have searched the threads but can't find a mention of this anywhere.

I bought a house a few months ago that I plan to use as my PPR but haven't yet sold my old PPR and I understand I have two years to do this before it stops being my PPR. What I'd like to know is how do they know when one stops and the other starts?

I signed a document called a Family Home/La Declaration or something like that when I was signing for my mortgage for the new house. Is this a revenue form or just for the mortgage company ie, is this declaring to the revenue that the new house is my PPR?
For instance, if it took me longer than the two years to sell my house, will revenue automatically charge me CGT on the old one when I sell, as the Family Home declaration tells them exactly when the clock started ticking?
Thanks in advance, fantastic site.
 
A family home declaration is just a document that sets out your marital status and is reqired by the land registry to register your mortgage. It has nothing to do with revenue.

However, in order to stamp the new transfer deed a PD form would have been submitted to revenue and this contains names, addresses and pps numbers for vendor and purchaser, address of property and purchase price and date of sale.

Thought you only had 1 year to sell old PPR?
 
Thanks, I couldn't find it when I searched the forum here. So when I do sell my old PPR, and if it's outside of the timeframe (was sure it's two years but if it's only one then it will definitely be outside it!) my solicitor and revenue will know it's no longer my PPR and will collect CGT accordingly is that it?
 
kfc said:
I bought a house a few months ago that I plan to use as my PPR but haven't yet sold my old PPR and I understand I have two years to do this before it stops being my PPR. What I'd like to know is how do they know when one stops and the other starts?
Click to expand...

Capital Gains Tax is a self-assessment tax. You can only have one PPR. If you live between two properties you can choose which one is your PPR. Since you are no longer living in the house it is not your PPR but you can still claim PPR Relief for the time you lived in it and the last 12 months of ownership e.g. lived in house from 1996 to 2005 inclusive (10 years), moved out start of 2006 and sold property at end of 2008. For PPR Relief you can claim for 11 years, the 10 you lived in the property and the last 12 months of ownership. Therefore any taxable gain you make on the sale of the property you can claim relief on 11/12 of it.
 
kfc said:
So when I do sell my old PPR, and if it's outside of the timeframe (was sure it's two years but if it's only one then it will definitely be outside it!)
Click to expand...
It's definitely one year.
my solicitor and revenue will know it's no longer my PPR and will collect CGT accordingly is that it?
Click to expand...
CGT is a self assessed tax. If you have a liability then it's up to you to make a return and payment.
 
OK, thought the solicitor would automatically collect this upon sale. When would the CGT need to be paid then? Is it in the same year of the sale or the following year?
 
Solicitors are not obliged to make a return for CGT unless you are non-resident. If you sell between 1st January and 30th September you pay the CGT by the 31st of October. If you sell by the 1st October and the 31st December you pay the CGT by the 31st of January the following year.

If the property is sold for over €500,000 the solicitor would have to get a CGT Clearance Certificate which informs the Revenue of the pending sale.
 
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