CGT exemption for PPR

G

gerrig

New Member
Messages
3
Hello
Looking for advice about CGT exemption after working abroad. Heres my situation:
2015 - Bought a property and lived in it for 5 years
2020 - Moved abroad for work and sold the property
2021 - Bought a new property in Ireland and lived there for a few months while on maternity leave
2022-2025 - Lived abroad again for work and rented out the property
Now I am moving back to Ireland but I want to sell the property to buy closer to my kids school. I do not own any other property, I was always renting while abroad and never made any profit on my Irish rental income. The only reason we moved abroad was for my work (not for an extended holiday or anything else). Will I be able to claim CGT exemption for PPR?
 
Last edited:
You should be entitled to partial CGT exemption.

What does"Lived abroad again for work" mean specifically?

The first property is now irrelevant to all this.
 
Last edited:
If your time abroad (2022-2025) is wholly because you were working abroad (you didn't, e.g., take a 3-month break to tour South-East Asia before taking up, or after leaving, you foreign employment) AND if you return to Ireland and live in the house as your principal residence again for a period before selling it, then you should be able to treat it as though it were your principal residence for the whole period of ownership.
 
gerrig said:
and lived there for a few months
Click to expand...
The brevity of this stay may or may not cause issues for your entitlement to PPR exemption, particularly if your reoccupation of the property is for a similarly short period.

A lot will depend on the wider circumstances.

Consider getting professional advice if the likely CGT bill is materially large.
 
gerrig said:
2021 - Bought a new property in Ireland and lived there for a few months while on maternity leave
2022-2025 - Lived abroad again for work
Now I am moving back to Ireland but I want to sell the property to buy closer to my kids school. Will I be able to claim CGT exemption for PPR?
Click to expand...
Was the property rented out while you were abroad?
 
Was the property rented out while you were abroad?

Yes sorry I have edited my original post. From 2022 - 2025 while I was working abroad the property was rented out and I was using the rental income to pay my rent abroad.
 
T McGibney said:
A lot will depend on the wider circumstances.
Click to expand...
What exactly? Revenue very pretty clear on this (my emphasis):

Full relief and deemed periods of occupation
Relief is given in respect of the gain accruing on the disposal of a dwelling-house (or part of a dwelling-house) which is a person's only or main private residence. Where only part of the dwelling-house qualifies, the gain is apportioned. There is also apportionment to ensure that the relief is restricted to the proportion of the period of ownership during which the dwelling-house was the only or main private residence and for this purpose the dwelling-house is treated as having been so occupied during certain periods of non-residence, including:  those periods spent elsewhere in the State or abroad by reason of the duties of an employment
Click to expand...
 
Dr Strangelove said:
What exactly? Revenue very pretty clear on this (my emphasis):
Click to expand...
Clear, how?

For example, if you lived at a location only for a few months while continuing to maintain a more permanent home at a different location before, during and after that period, there is a possibility that the first location was never your PPR.

We have no idea whether or not such a complication might arise in the OP's case, as we can only go on the limited details they have provided above.
 
Last edited:
Thanks for your replies and just to clarify - I lived for a short time in the property then I moved abroad for work and I rented out the whole house (not under the rent a room scheme). I was paying more in rent while living abroad so I never made a profit on the Irish rental income especially after paying expenses on it (LPT, insurance and 20% income tax). Now I am moving back to Ireland and I need to sell the property to buy closer to my childs school and my work. None of what I have done with the property is making profit - the rent I gained only covered a portion of my rent abroad and when I sell it I will use the proceeds towards the purchase of another property that will be my PPR. Im not an investor making big profits....hopefully revenue will take this into account?
 
gerrig said:
I was paying more in rent while living abroad so I never made a profit on the Irish rental income especially after paying expenses on it (LPT, insurance and 20% income tax). ... None of what I have done with the property is making profit - the rent I gained only covered a portion of my rent abroad and when I sell it I will use the proceeds towards the purchase of another property that will be my PPR.
Click to expand...
All of this is irrelevant to topic of CGT.
gerrig said:
Im not an investor making big profits....hopefully revenue will take this into account?
Click to expand...
Since it was rented out outside the rent a room scheme is quite likely that some portion of any resale gain is assessable for CGT. The examples here may help but if in doubt get professional advice.

Principal Private Residence (PPR) Relief

This page outlines Principal Private Residence (PPR) Relief
www.revenue.ie www.revenue.ie

Restriction if you have not always lived in the property​

You can only claim for the time you lived in the property.

...
Click to expand...
 
Last edited:
  • Like
Reactions: Leo
Best not to sweat it, seems you don’t need to claim PPR exemption officially in any case, just treat the sale like anyone else selling their PPR and do nothing. Unlikely Revenue will come asking and if they do, think about it then.
 
ClubMan said:
Why do you think that a portion of any gain in respect of the rental period might not be assessable for CGT?
Click to expand...
Taxes Consolidation Act 1997 s. 604(5)(b)(i) looks like it may apply — a period of ownership during which the taxpayer resides abroad for employment reasons, on certain conditions, can be treated for CGT purposes as a period during which they occupied the property as their main residence.

It's irrelevant whether the property is rented out while the taxpayer is abroad — "must not rent out the property" is not one of the conditions in s. 604(5)(b)(i).

ClubMan said:
Within the rent a room scheme or not?
Click to expand...
Bit of a side issue, but worth pointing out that if sombody who is living abroad rents our their home in Ireland, they will necessarily be doing so outside of the rent-a-room scheme. Once of the conditions for that scheme is that the taxpayer should actually occupy the home in which they rent out a romm or rooms as their sole residence. Having it deemed to be their main residence for CGT purposes is not enough.
 
Last edited:
MelF said:
Best not to sweat it, seems you don’t need to claim PPR exemption officially in any case, just treat the sale like anyone else selling their PPR and do nothing. Unlikely Revenue will come asking and if they do, think about it then.
Click to expand...
AAM neither condones nor facilitates tax evasion.
 
ClubMan said:
Why do you think that a portion of any gain in respect of the rental period might not be assessable for CGT?
Click to expand...
Apologies, I actually missed the rental bit - thought OP was merely concerned about the time they hadn't lived in the property.
 
You must log in or register to reply here.
Back
Top