Guide to Capital Gains Tax question

samspuds

Registered User
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Hello

Could someone possibly clarify the points mentioned in the extract from CGT liability guide below please?

Specifically

(i) any period throughout which the individual was employed outside the State; and



(ii) a period of up to four years during which the individual was required by the conditions of

his/her employment to reside elsewhere.



I ask as I left Ireland nearly eight years ago and have rented my property in Ireland for that period.

I intend to sell this year and I am looking for a rough figure as to my CGT liability.

When I left Ireland I was unemployed so for the eight years (rounded up for simplicity) I had my property rented out, Is my liability 7 years, 4 years or do I not have any liability.



As I have not moved back to Ireland does this section apply to me?



“In addition to the twelve months referred to above, the following periods of absence from the

house are also regarded as periods of occupation provided that, both before and after those

periods, the house was the owner.s only or main residence and that throughout those

periods he/she had no other house eligible for exemption”






Thanks in advance



Sammy







5. Private Residence

Full relief

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. In the

case of a married couple living together only one house can qualify as the only or main residence

of both spouses.

Partial Relief

. Full exemption may not be due if only part of the house has been used as the individual.s

residence, in which case an apportionment is made to arrive at the exempt portion of the total

gain. This may happen where the house is used partly for business purposes or where rooms in

the house have been let.

. The exemption is also restricted where the taxpayer has not lived in the house for long periods.

However, a period of up to twelve months immediately before the end of the period of

ownership is treated as a period of occupation even though the owner may not have been

actually living in it during that period.



In addition to the twelve months referred to above, the following periods of absence from the

house are also regarded as periods of occupation provided that, both before and after those

periods, the house was the owner.s only or main residence and that throughout those

periods he/she had no other house eligible for exemption:-



(i) any period throughout which the individual was employed outside the State; and



(ii) a period of up to four years during which the individual was required by the conditions of

his/her employment to reside elsewhere.





Guide to Capital Gains Tax 14

 
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