House advise

H

Hansel

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myself and my girlfriend are hoping to build and sell a house in cork.
how long would we have to hold on to it before we pay less capital gains??
 
House advise
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You would need to live in the property as your PPR (Principal Private Residence) for some time before selling it for it to be exempt from CGT.
 
Firstly remember that most county councils impose an occupancy clause for up to 7 years on new builds - especially in rural areas. Some actually lodge/register the clause on your title to the property – there are other threads here on that.

I can’t find a link in Revenue to this for you but a PPR is

An individual’s principal private residence at any time is the building or part of a building occupied by the individual as his or her only or main residence: during the period of 12 months ending with that time, or where the building was more recently acquired, from the time of acquisition to that time.

My reading of this is that if you build a house and move into it, it becomes your PPR straight away. You need to qualify for “principal private residence relief” for Capital Gains Tax purposes and where it has been your main residence for a period of time you qualify.

I’d be checking with my solicitor though it if you were definitely going to try and sell it before 12 months was up.
 
To the best of my knowledge at least on year. But it varies from person to person, depending on individual cricumstances, tax history, national or non-national, a whole range of issues. You'd be best to ask your solicitor really
 
Thanks for all the info, i think we will need to check with the soliciter alright. The occupancy clause from the county council doesnt apply to me as planning was granted before this was enforced in my area.Do you think that if i was forced to sell the house straight way and was caught to pay the 20% CGT, could i be exempt from paying it if i could prove that it the entire profit was going to fund our home we plan to settle in? Really appricate all your info.
 
Hansel said:
Do you think that if i was forced to sell the house straight way and was caught to pay the 20% CGT, could i be exempt from paying it if i could prove that it the entire profit was going to fund our home we plan to settle in?
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No - rollover relief such as this on reinvestment of capital gains was abolished years ago.
 
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