CGT how is PPR ASSESSED?

M

mr green

Guest
I have owned my house for 17 years and lived in it for past 7 years. before that I was in england working but my wife lived in it for long periods. If I sell now am I liable for CGT. Do I have to prove I lived in it as my principle residence or what. Does the sale price have any bearing on liability, ie above or below 500,000 euros. advice would be appreciated.
 
If the property was rented out for periods of time then some of the resale gain (sale price less acquisition price indexed for inflation less allowable expenses less previously incurred capital losses less annual CGT allowance of €1270 etc.) will be assessable for CGT. In basic terms a proportion of any gain related to the rental periods as a percentage (or therabouts) of how long overall the property was owned is assessable for CGT. CGT is a self assessment tax so you provide the Revenue with the details/calculations when declaring/paying. Normally these do not need to be backed up with receipts etc. but you should be able to do so as far as possible in case they decide to query/audit the figures.
 
PPR

If you occupy a house both before and after a period of foreign employment as your PPR and in that period you had no other PPR than the period of absence counts as a period of occupation for the purposes of the relief
 
Re: PPR

First :

You could transfer the house to your wife without CGT problems;

Fact that your wife always lived there means it is your joint PPR as you can only have one;

If you were in UK for employment that is ignored.

If the gain is €1 or €5m.. no tax!

Its magic!
 
cgt,

Thank you all for your replies. I would like to add that since we bought the property it has not been rented out. I was unoccupied for periods of time while i was in england working and at times my wife was there too nursing her sick mother. I can honestly say the house was my principle residence for the past seven or eight years and still is. Am I liable for CGT for any of the years I was working in england and living there although I always considered this to be my residence.
 
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