CGT on sale of PPR / Rented property

[sjcburns]

I have a question on CGT due on the sale of a house that started out as a PPR and was then rented, appreciate any input from anyone who can help me with this query ....

A house is bought in 1994 for 50K IEP, was a PPR from 1994 to 2003, re-mortgaged in 2003 and subsequently rented from 2003 to 2010, property sold in 2010 for 250K Euro. The property value at the time of rental / re-mortgage in 2003 was 280K.

My question is, if all the gain was made when the property was the PPR is CGT still due even though a loss of 30K Euro was made for the 7 year period that the property was rented ?

Thank You

 

[Berni]

The value when it was rented isn't a factor.
The taxable gain is proportional to the time it was rented, so in this case 62.5% is exempt (9+1 / 16)

 

[Ham Slicer]

As Berni said but it's also worth noting that in calculating the PPR relief it's broken down in to months - so it was ppr for 89 months and not ppr for 46 etc - don't just round to years.

Don't forget indexation relief and any enhancement that was carried out.

I think a tax advisor should always be used for CGT calculations of this magnitude - too much at stake to do it yourself.