Can one's Principal Private Residence be in NI?

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d4denzell

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Hi,

I am currently renting a property in Dublin, but have purchased a property off-plans in Belfast which is soon due to be completed .

I had originally planned to just declare this as an investment property to the Revenue Commissioners and pay CGT on any profit accordingly when I sell the property.

But I was just thinking - as I currently own no other property could I register the Belfast address as my PPR and thus escape having to pay CGT when I dispose of it? I know several people who currently commute from Greater Belfast to Dublin every day (not my idea of fun but people DO do it), so I don't think it would be far fetched to claim to live there.

Does anyone here know if this scenario is possible?

cheers.
 
You cannot call a property your PPR if you don't live there. To do so would be fraud and tax evasion. There may also be UK tax issues here. You should get independent, professional advice.
 
Don't see why not once you register it as your PPR with the UK inland revenue (you run the risk of being caught for fraudulent representation though if you do not live there).

Also if you do rent it and your tenants wish to claim rent relief (if there is such a thing is the UK) then you will need to be registered as a landlord as in Ireland (presumably).
 
The property is not a PPR unless lived in. The previous post contains bad advice in my opinion.
 
OP asked was the scenario possible not for advice on the rights and wrongs of such a course of action.
 
Of course it's possible to engage in fraud and tax evasion but it's hardly useful or prudent advice to say so?
 
NorfBank said:
OP asked was the scenario possible not for advice on the rights and wrongs of such a course of action.
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OP asked if it was possible to "escape having to pay CGT" in the scenario outlined. The answer is, not without breaking the law.
 
Hardly mere semantics to point out that a possible scenario that involves illegality is not the prudent or appropriate?
 
Can I please clarify, I am not trying to break the law or evade paying tax.

What I would do, if possible, IS actually live there for a short period of time instead of renting in Dublin, and thus hopefully save myself the 20% in tax on any profit made upon selling it. I'd continue working in Dublin.

My question could have been made clearer I admit - what I essentially want to know is if I were to move to Belfast and resell shortly afterwards - would I be liable for CGT in Ireland as this is where I have been living for the past 7 years?

What is the exact definition of a PPR? Does the Revenue's definition say it must be in the Republic of Ireland?
 
d4denzell said:
What I would do, if possible, IS actually live there for a short period of time instead of renting in Dublin, and thus hopefully save myself the 20% in tax on any profit made upon selling it. I'd continue working in Dublin.
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You will get CGT relief in respect of any time that the property is genuinely your PPR. However if you move out and retain the property for more than 12 months after vacating it as your PPR then some portion of any resale gain will be assessable for CGT. There may also be UK tax implications.
My question could have been made clearer I admit - what I essentially want to know is if I were to move to Belfast and resell shortly afterwards - would I be liable for CGT in Ireland as this is where I have been living for the past 7 years?
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Not if the property is your PPR for all of the time that you own it (or all of the time less 12 months actually).
What is the exact definition of a PPR? Does the Revenue's definition say it must be in the Republic of Ireland?
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No exact definition but basically it's your normal place of residence and in general this vague definition suffices.
 
Cheers for the advice, I will speak with a tax consultant at some stage before the Belfast property is completed to get the finer details but in general it sounds promising.

have a good weekend! Come on Ireland!!! ;-)

d4denzell
 
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