CGT on previous PPR

Hi,

I would appreciate your help with my query below.

I have looked through some of the previous threads relating to the amount of CGT that must be paid on the sale of a property that started out as a PPR but ended up being rented. One point remains unclear to me.

I sold a property that I owned for 7 years. 3 of these years it was my PPR and the remaining 4 it was rented.

Do I pay tax on 4/7 of the gain or (4-1)/7 of the gain?
If it is (4-1)/7, where does the 1 come from?

Thanks.

You are automatically entitled to the final 12 months prior to disposal as a period of occupation IIRC, i.e. it is a 'deemed' period of occupation

jf889 said:

I sold a property that I owned for 7 years. 3 of these years it was my PPR and the remaining 4 it was rented.

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Were you also liable for a clawback of stamp duty when you rented the former PPR property out within five years of the original purchase and, if so, did you discharge this liability?

Thanks for the prompt reply.

I only recently found out about the stamp duty clawback. I have not yet paid this.

Is there a formal process to go through to pay this tax?
Can I simply fill out the appropriate form (what ever that is) and attach a cheque?

You will also owe interest from the date the stamp duty became payable, i.e. the date of first letting I presume.

I general just write directly to Revenue with details of any such liabilities (or similarly claims for refunds) attaching as much relevant detail as possible. If you have outstanding liabilities and are not 100% sure of how much then you should probably get independent, professional advice from a tax expert/accountant.

jf889 said:

Can I simply fill out the appropriate form (what ever that is) and attach a cheque?

Click to expand...

The form is available on revenue.ie as follows, the SD rate is the rate ruling at the date of purchase - as if you were a investor not owner occupier

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Just to clarify-the stamp duty would be calculated as at the date of purchase, but due from the date the property is rented AFAIK.