Is a nursing home a principal residence?
- Thread starter IsleOfMan
- Start date
Provided the property is unlet and unoccupied while the owner is in a nursing home, the time spent in the nursing home may be treated by Revenue as a period of occupation.
In otherwords, provided he lived in the house at all other times, and meets the general requirements for principal private residence relief there should not be any CGT implications.
In any event, the last 12 months of ownership is always treated as "deemed occupancy" so if the house is sold within 12 months there shouldn't be any problems.
It is an interesting point, though. If Revenue were to follow the letter of the law then there could be CGT implications in such cases.
This is a sensitive subject, and I don't mean to treat it coldly, but if your father retained ownership, and say let the property, there would be no CGT charge when the property passes on death. Perhaps something to consider given the non-existent property market.
However, as always, you should seek professional advice before you take any action.
In otherwords, provided he lived in the house at all other times, and meets the general requirements for principal private residence relief there should not be any CGT implications.
In any event, the last 12 months of ownership is always treated as "deemed occupancy" so if the house is sold within 12 months there shouldn't be any problems.
It is an interesting point, though. If Revenue were to follow the letter of the law then there could be CGT implications in such cases.
This is a sensitive subject, and I don't mean to treat it coldly, but if your father retained ownership, and say let the property, there would be no CGT charge when the property passes on death. Perhaps something to consider given the non-existent property market.
However, as always, you should seek professional advice before you take any action.
mandelbrot
Registered User
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There is nothing in Section 604 TCA 97 to explicitly extend the relief - it would come down to an argument about whether or not the house continued to be the individual's PPR while they were in the nursing home, which is something that would rest on the facts of the case.
If there is no valid expectation that the individual will ever return to occupy the house again, or if they had gone to live in the nursing home (or more likely a retirement village) purely because they wanted to, then it would argue against the house being their PPR.
If their belongings have been packed up and the house let to tenants, then that would strongly argue against the house continuing to be their PPR.
If on the other hand, the house has been left as it was, awaiting the owner's return, then one could argue that the time in the nursing home is no different, in fact, than an extended stay in hospital.
It would be an interesting case, if it were to be argued, but I'd say the likelihood is that an Inspector would be unlikely to restrict the relief in such circumstances, but I've never actually heard of it arising as an issue.
If there is no valid expectation that the individual will ever return to occupy the house again, or if they had gone to live in the nursing home (or more likely a retirement village) purely because they wanted to, then it would argue against the house being their PPR.
If their belongings have been packed up and the house let to tenants, then that would strongly argue against the house continuing to be their PPR.
If on the other hand, the house has been left as it was, awaiting the owner's return, then one could argue that the time in the nursing home is no different, in fact, than an extended stay in hospital.
It would be an interesting case, if it were to be argued, but I'd say the likelihood is that an Inspector would be unlikely to restrict the relief in such circumstances, but I've never actually heard of it arising as an issue.
Well thought through Mandlebrot - you must be a Revenue inspector in disguise 
I got my information from the Revenue CGT manual. You're right S604 wouldn't extend PPR relief in such circumstances but Revenue are decent about it for the reasons you set out. I don't think there'd be much of an argument over it - could you imagine the headlines?
I got my information from the Revenue CGT manual. You're right S604 wouldn't extend PPR relief in such circumstances but Revenue are decent about it for the reasons you set out. I don't think there'd be much of an argument over it - could you imagine the headlines?