CGT relief

[gas]

I bought a house in 1995 & lived there until 1998 as principal private residence,then moved out & rented it until May 2004. I then moved back in for 9 months until Feb 2005 & then I moved out & rented it again up untill now when I am selling the house.
I am confused as how to work out the likely gain if any based on the fact that I moved back for a period of 9 months as principal res.
Any guidance apperciated.

 

[Graham_07]

The periods of residence + final 12 months as a percentage of the total ownership period would be deemed PPR. The remainder is investment property.

 

[Gervan]

So you work out the gain: [original cost plus costs of purchase eg stamp duty, legal fees] minus [net proceeds you get after costs of selling]and [expenditure to improve the property]= GAIN.
Work out your total months of ownership, total months of occupation (including the final 12). Taxable gain is then GAIN x total months non-occupied / total months owned. Subtract the small annual CGT exemption of €1270. Liability is 25% of what is left.
CGT is self-assessment, do not expect a form CG1 to be sent out to you. If the sale takes place before 30/11/09 the liability must be paid before 15/12/09.

In addition to your payment, you are also obliged to make a return of the capital gain on your annual return of income form on or before 31 October in the year following the tax year in which the disposal is made. If you are not normally obliged to submit an income tax return, you should make your return of capital gains on a form CG1.
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