CGT on home which changes to an investment

U

Unregistered

Guest
I need help understanding a CGT issue
I have a house in Dublin which I bought in 2001. It is my only huse and PPR
It has appreciated by circa €200k in that time - luckily
I live it in now, but am considering moving away to another part of Ireland and renting it out.

If I do so, is there any way of locking in the gain now i.e. getting a valuation once it ceases to be my Principal Private Residence ?

The reason is that I essentially have a €40k CGT bill at the moment for gains made while it was my PPP.

Can I revalue it to the current market value now to increase the allowable cost for a future sale ?

Thank You
 
Unregistered said:
If I do so, is there any way of locking in the gain now i.e. getting a valuation once it ceases to be my Principal Private Residence ?
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Other than selling now and pocketing the CGT free gain arising from the sale of your PPR - no.

If you retain the property and rent it out then when it comes to selling it the time that it was rented determines what proportion of the total gain is assessable for CGT. For example if you own a property for 10 years, lived in it for 6 years as your PPR and rented it out for 4 years then 3/10ths (as far as I know the first year after it ceasing to be your PPR is not counted even if the property was rented out but I could be wrong) of any gain is assessable for CGT.

Note also that if you rent out a former PPR within five years of purchase as an owner occupier then you will be subject to a clawback of stamp duty as outlined on .

The reason is that I essentially have a €40k CGT bill at the moment for gains made while it was my PPP.
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I don't understand this.

Can I revalue it to the current market value now to increase the allowable cost for a future sale
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No - definitely not. There is no way to rebase the effective acquistion cost in this way when switching from PPR to rental property.

Perhaps you should consider if you would be better off now selling up and taking the CGT free gain rather than holding on and getting into the rental property business?
 
Thanks Clubman for tyour advice

The €40k that I quoted is my rough calculation of €200k @ 20%.

I really don't want to sell the property, but perhaps it is the bestthing to do financially ?
 
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