CGT on PPR if house is unoccupied while travelling

Brendan Burgess

Brendan Burgess

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I have been asked by a retired person who is planning on travelling without letting out their home in Ireland, if the period of absence will affect her CGT. She asked if there was a 6 month residency test.

I have read the Revenue Guide and it seems very clear to me.

Section 5 - PPR

" The exemption is also restricted where the taxpayer has not lived in the house for long periods"

So it would be restricted.

I have told her that the 183 days test does not apply. The Revenue will look at the number of months of ownership and the number of months during which the house was unoccupied.


If she is absent for a long time, the period is not regarded as a period of occupation.

If she goes away for 10 months without renting and comes back for a while and goes away again, that would not be a "long period".

If she goes away for two years and comes back, that probably would be a period of non occupation.

I don't think that she is covered by the following

In addition to the above the following periods of absence from the house are also regarded as periods of occupation:
(a)
(i) any period throughout which the individual was employed outside the State, and
(ii) a period of up to four years during which the individual was required by the conditions of his/her employment
to reside elsewhere.
providing that, both before and after those periods, the house was the owner’s only or main residence and
throughout those periods he/she had no other house eligible for exemption.
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Brendan
 
If she stays outside Ireland for a few years and then sells her home, she will become non resident. Are non-residents exempt from CGT on profits made on disposal of Irish assets?


She may of course be subject to CGT on disposal of her worldwide assets in her new country of occupation.
 
Hi Bronte

Sorry, got interrupted when I posted that earlier.

it was meant to be a question rather than a statement. Some Irish people with substantial capital gains have gone abroad before realising those gains to avoid CGT. Maybe it does not apply to assets in Ireland.

Brendan
 
If the asset is Irish located (e.g. land and buildings in the State) isn't it always liable to Irish CGT (unless specifically exempted) regardless of the residency of the seller?
 
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