Calculating Capital Gains Tax on former Principal Private Residence

Hi all - I've got a question on calculating a Capital Gains Tax liability on the sale of a rented house that used to be a principal private residence (PPR). Is the period during which it was a PPR exempt from Capital Gains Tax i.e. is the CGT calculated proportionally over the whole number of years of ownership?



For example, let's say the following;

• I bought a house in August 2001 and sell it now - so I have owned the house for 10 years.
• I bought the house for 100K and am selling it for 200K.
• I lived in the house from August 2001 - August 2007 and rented it from August 2007 to now (i.e. 3 years out of the 10).

What is the Capital Gain on which CGT should be calculated? Is it;

• 100K (i.e. the 7 years I lived there are ignored)

or is it

• 30K (i.e. 100K x 3/10 - so I only pay CGT for the period in which it was NOT my PPR)?

Revenue's website doesn't provide a clear answer on this, which is why I am bothering you poor people...

Any help appreciated!

It is proportional to how long it was your PPR. Also, the last year of ownership is also considered time as your PPR, so 8/10 of the gain is exempt and you pay on €20K

Thanks Berni - good to know. Much appreciated.