CGT on former principal residence

Hi,

We moved house in 2007 due to my job re-locating back to base, we subsequently built a home and moved in in 2010 having rented and stayed with family in the meantime. We tried to sell our original house and failed so we rented it out from 2009.

We are now looking to sell our previous house and use most of that money to pay off a part of our current mortgage (we owe family €17k for land our new house was built on). Net of that €17k, we would hope to have about €80k left to pay off our current mortgage.

My question is, do we pay CGT on the sale if we are using the money for the most part to pay off our mortgage on our principal residence?

Thanks in advance.

The answer is yes on the basis that you made a gain in the first instance. It will be apportioned between your residence and non-residence. Take a look a the Revenue guide and it will help you. http://www.revenue.ie/en/tax/cgt/leaflets/index.html

From memory the last year is deemed ownership.

Greater minds than mine posting on AAM can please correct me on this - but isn't there a further relief where someone had to leave their PPR due to the job ? I think though, to avail of the relief, the house had to be relived in ... ...

I wonder, I wonder ... ... there might be some scope for some CGT planning here; could you and your family on however temporarily a basis move back into the old house ?

Before the OP tells the OH the good news perhaps they should consider.

slane85 said:

We moved house in 2007 due to my job re-locating back to base, we subsequently built a home and moved in in 2010 having rented and stayed with family in the meantime. We tried to sell our original house and failed so we rented it out from 2009.

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In order to be able to claim the relief for these periods away from the property, you must have lived in the house as your home both before and after the period of absence. Additionally, you cannot have any other house eligible for the relief throughout the period of absence In relation to this latter point, you do not have to have claimed the relief on another property; the mere ownership of a property that could qualify for the relief will disqualify you.

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The period while the house was their PPR and the last 12 months over the period of ownership will be exempt.