CGT calculation for rental / PPR sale

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Páid

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I bought a house in 2003. It was a PPR for some periods and rented out for others. It was sold after 7th October 2026 year and I’m looking for opinions on whether this CGT calculation is correct. I have assembled what I can from other threads.

Bought in 2003 for €212,000
Sold in 2026 for €410,000
Profit €198,000

Allowable Expenses
Stamp Duty €6,360
Land Registry Fees €530
Search Fees €40
Buying Legal Expenses €1,512.50
Selling Legal Expenses €2,174.45
Selling Estate Agent €4,034.40
New kitchen €2,676
New windows (glass only) €2,800
Annual CGT Allowance €1,270
Total allowable expenses €21,397.35

Chargeable gain €176,602.65
CGT @ 31% =0.31 €54,746.82

Rental/PPR calculation
PPR (23/12/2003-08/02/2004) 48 days
Rented (09/02/2004-01/12/2010) 2488 Days
PPR (02/12/2010-21/02/2013) 813 days
Rented (22/02/2013-31/03/2019) 2229 days
PPR (01/04/2019-10/05/2024) 1867 days
Vacant (11/05/2024-19/10/2026) 892 days (VHT already paid)
12 month vacant exemption for final year for CGT purposes (365 days)
Total days owned 8337
Total PPR days 3093 = 37.10%
Total non-PPR days 5244 = 62.90%

CGT adjusted for PPR €34,435.93

Thanks for any suggestions or corrections.
 
Surely the gain is apportioned by the days used as a rental, and then the tax rate is applied later, to the adjusted gain.

You apply the tax rate first, and then later you adjust the tax bill by the relevant days.
 
Protocol said:
The annual CGT allowance is used at the end of the calculations, it is not an allowable expense.
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That doesn't alter the way it's factored in above though? To avoid any confusion it's subtracted before calculating the CGT due at 33%. I've seen people think that you calculate the CGT due and then subtract €1,270 from that which isn't how it's done unfortunately. The annual CGT exemption is ultimately worth the princely sum of €419 in terms of CGT tax avoided.
 
Protocol said:
Surely the gain is apportioned by the days used as a rental, and then the tax rate is applied later, to the adjusted gain.

You apply the tax rate first, and then later you adjust the tax bill by the relevant days.
Click to expand...
I could do it that way but it would make no difference to the end result. If you multiply by 62.9% and then by 31% it makes no difference if you do it in the reverse order.
 
Are you sure the replacement window glass is a capital expense - to me it seems more like repair expense to be offset against the rental income
 
It was done in the 12 months before sale while the house was vacant, specifically to get the house ready for sale. Kitchen was earlier but not while rented. Neither were claimed against rental income.
 
Updated calculation. Thanks everyone for your input.

Bought in 2003 for €212,000
Sold in 2026 for €410,000
Profit €198,000

Allowable Expenses
Stamp Duty €6,360
Land Registry Fees €530
Search Fees €40
Buying Legal Expenses €1,512.50
Selling Legal Expenses €2,174.45
Estate Agent €4,034.40
New kitchen €2,676
New windows (glass only) €2,800
Total allowable expenses €20,127.35

Chargeable gain €177,872.65

Total days owned 8337
Total PPR days 3093 = 37.10%
Total non-PPR days 5244 = 62.90%

Apply Partial PPR Relief €111,882.47 (chargeable gain x 62.90%)
Deduct Personal Exemption €1,270
Taxable Gain €110,612.47

CGT @ 31% = €34,289.87
 
Repairs and maintenance cost are not allowable expenses when calculating CGT

You have the ppr relief the wrong way round but the result is correct

Chargeable gain 177,872
Less ppr relief = 37.10% = -65,990
Net chargeable gain 111,882
le personal allowance-1270
Etc
 
Last edited:
Páid said:
It was a PPR for some periods and rented out for others
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You seem to have everything covered (and there's no indexation relief from 2003 onwards so you haven't missed that) but just to say that you can get an extra 4 years deemed as PPR on that property if you can argue you were effectively obliged to work in a different location from where the house is located and had no other PPR during those 4 years of non-occupation. That's in 604(5).

It may not be relevant but just flagging because you seem to have lived elsewhere for periods but then returned to occupy it as your PPR which raises the prospect that you may not have another PPR during the time away. The fact that you rented out the property during those 4 years does not prevent the relief being claimed. They tried to tighten it somewhat but it seems broad enough to encapsulate just generally working in a different location rather than being categorically sent by the same employer to a different location.

________________

As per Revenue "The continuity of owner-occupation is not interrupted by periods spent in employment abroad or by periods of absence not exceeding in the aggregate 4 years because of the situation of an individual’s place of employment or an obligation of the individual’s employment to reside elsewhere. Any such periods are treated as periods of occupation of the principal private residence."

A “period of absence” is a period during which the dwelling house was not the individual’s only or main residence and throughout which the individual had no residence or main residence eligible for the relief.

Certain periods of absence during which the individual was prevented from residing in the house are treated as periods of owner-occupation if, both before and after those periods, the house was occupied by the individual as his/her only or main residence. These are —

  • any period throughout which the individual worked in an employment or office all the duties of which were performed outside the State, and
  • any period not exceeding 4 years, or any periods which together do not exceed 4 years, throughout which, because of the individual’s place of work or a condition of employment, the individual had to reside elsewhere. The condition of employment must have been reasonably imposed to secure the effective performance by the individual of the employee’s duties.
 
jpd said:
Are you sure the replacement window glass is a capital expense - to me it seems more like repair expense to be offset against the rental income
Click to expand...
I suppose depends on whether they were an improvement i.e. triple glazing upgraded from double glazing.. or something like that..
 
Unfortunately, Mrs. Páid will be using her allowance for something else.

I rang the CGT helpline and spoke to someone about the window glass and in their opinion the glass is an enhancement in my particular case.

I'm pretty sure I'm all set now.

AAM really is a great resource. Lots of people here are willing to offer their time giving advice and information.

Thanks everyone for the responses and suggestions, I really appreciate it.
 
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