CGT query - selling Irish home after living abroad for 2 years

G

giddyup

Registered User
Messages
51
Wonder can anyone help me with this one:

Bought house in 99.
Moved to US in Aug 07.
Wife followed me in Oct 08.
Renting in US.
Kept house - vacant, mortgage and bills paid etc.
Planning to sell now as we are commiting to stay here longer.

I understand that if you work abroad and then move back and subsequently sell, the house can be considered your PPR all along. What about if you don't move back and just sell? Still the same?

I'm thinking the house has remained our PPR all along and I don't have any CGT liability. Any ideas?

Thanks in advance.
 
After you cease using the house it will not attract CGT for 12 months (to give you time to sell). Your wife moved out in Oct 08, so it only becomes liable for CGT this month. Say you sell in 3 months time - CGT will be calculated as 3 months gain over the 10 year period

For example, you make a profit of 200,000, and owned the house for 10 years, your CGT would be payable on 1/40th of the profit, or €5,000. The tax rate is 23%, so you'd pay approx 1,200 in tax.
 
Thanks j26 - do you know if I can also claim 1270 relief on this CGT liability - even if not living in Ireland.... I'm assuming because I have a tax liability that I can also avail of reliefs.
 
Presumably you can claim the relief, but you should contact Revenue for clarification.
 
You must log in or register to reply here.
Back
Top