Unusual CGT and PPR situation.

I

i237

Guest
Hi,
As 1st time buyers we purchased house 'A' over 5 years ago.
We purchased house 'B' 15 months, and have now lived in it as our PPR for 12 months.

We initially intended selling/letting house 'A', but our circumstances changed and we realised we wanted to move back to house 'A', so didnt sell or let.
House 'A' has now been vacant for 12 months. We have paid both mortgages for this period.

We now want to sell house 'B', our current PPR.

It has been suggested that we are liable for capital gains tax on the sale of house 'B'.

Is this the case, as we have lived here for the requisite 12 months, or are there issues around PPR that come into play?

We haven't managed to find any conclusive documentation to find out.
Any assistance appreciated.
 
There will be no CGT on house B as it is your PPR and has been for the full period of ownership.

When you eventually sell house A, there will be 15 months of ownership that won't qualify for PPR relief and you will have a GCT liability on the sale.
 
You are supposed to inform the revenue that you have changed your PPR if you retain the previous one so they may make it sticky for you. You should just stick to your guns and convince them that your motives were not profit based and you should be OK.
 
If the circumstances giving rise to the move from 'A' were work related (and I think its an 'employment') there could be scope to get the 15 months as 'deemed occupancy' not withstanding the move to 'B'.

Revenue may split hairs by saying you cannot have two PPR at same time, and I think the 'deemed occupancy' might get around that.
 
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