CGT sale of property.

[apttax]

Just looking for any insight to CGT that will be liable on a sale of a property.

Brief background I lived in the property for first 9 years and last 3 years. I paid tax on rental income in the middle 13 years while I rented myself elsewhere (different county).

I have a valuation of the property 10 months before I moved back in and now the sale price is 100,000 more than this valuation. Can I use the valuation to show a gain in value while I lived here myself or will I be liable for CGT on the full gain for the portion of the 13 years out of 25 years.


Any tips much appreciated!

 

[T McGibney]

Can I use the valuation to show a gain in value while I lived here myself

No, that's unfortunately irrelevant.

 

[jpd]

CGT is liable on the gain between the purchase price and the sale price with allowance for purchase and selling fees.

You will get relief for the 12 years +1 of the 25 years so only 12/25ths of the gain is taxable

There is also indexation relief for the purchase which applies to the purchase price, if it was purchased 31/12/2002

https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/cgtmult.pdf

 

[ClubMan]

Brief background I lived in the property for first 9 years and last 3 years. I paid tax on rental income in the middle 13 years while I rented myself elsewhere (different county).

See example 2 here to get a rough idea of how this is dealt with.

Principal Private Residence (PPR) Relief

This page outlines Principal Private Residence (PPR) Relief

www.revenue.ie

Restriction if you have not always lived in the property​

You can only claim for the time you lived in the property.

 

[Ciru75]

You will get relief for the 12 years +1 of the 25 years so only 12/25ths of the gain is taxable

In this case the relief is for 12/25 of the gain and CGT applies to 13/25. The last year counts as part of the time it was a PPR even if they weren't living there at the time but in this case, it's one of the 12 PPR years.