Green in Wien
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There is a relief on capital gains for all property bought between 1 December 2011 and 31 December 2014 if you held the property for seven years and sold after 1 January 2018. If you held the property longer you get partial relief. So for 10 years you get a 70% (7/10) relief on any gain.
My question is whether the use of the property as a PPR at any stage interferes with this? I can't see anything in the Revenue guidance to say it wouldn't, but wanted to clarify.
My own situation is below. I've simplified dates and numbers a bit but as follows:
1 July 2012: bought house for €370k, became PPR;
1 July 2016: moved abroad for work, house becomes a rental;
1 July 2022 (possibly): we sell house for €620k, realising €250k gain.
Gain occurs over nine years of which seven qualify for the exemption. So the €250k gain gets an exemption of (70%) 7/10 I think. For simplicity we exclude selling expenses and personal exemption so the liability is (100%-70%)*33%*€250k=€24.8k. Is this right?
I ask because it seems if we hold the property less and less of the gain is sheltered over time. 70% sheltered over ten years but only 50% (7/14) after another four years. So even if we do nothing and prices don't change we build up a CGT liability of a few thousand a year. I am thinking of selling up and there are several other considerations but wanted to be clear on the CGT issue if anyone can help.
My question is whether the use of the property as a PPR at any stage interferes with this? I can't see anything in the Revenue guidance to say it wouldn't, but wanted to clarify.
My own situation is below. I've simplified dates and numbers a bit but as follows:
1 July 2012: bought house for €370k, became PPR;
1 July 2016: moved abroad for work, house becomes a rental;
1 July 2022 (possibly): we sell house for €620k, realising €250k gain.
Gain occurs over nine years of which seven qualify for the exemption. So the €250k gain gets an exemption of (70%) 7/10 I think. For simplicity we exclude selling expenses and personal exemption so the liability is (100%-70%)*33%*€250k=€24.8k. Is this right?
I ask because it seems if we hold the property less and less of the gain is sheltered over time. 70% sheltered over ten years but only 50% (7/14) after another four years. So even if we do nothing and prices don't change we build up a CGT liability of a few thousand a year. I am thinking of selling up and there are several other considerations but wanted to be clear on the CGT issue if anyone can help.