PPR - definition
- Thread starter Mrs Aol
- Start date
With regards to the capital gains tax on selling a property - when, and to whom, do you state wheather it's your principle residence or not?
It either is or it isn't - not being funny.
When you sell, a ppr is exempt. Any other is not and any gain is taxable. Its for the property owner to submit their payment and return. If this is not done and there is CGT payable then I assume that sooner or later it comes back to bite you on the bum and you pay the CGT plus interest and penalties.
Proof? - utilities, addresses on everything, confirmation from e.g. solicitor/accountant.
mf
It either is or it isn't - not being funny.
When you sell, a ppr is exempt. Any other is not and any gain is taxable. Its for the property owner to submit their payment and return. If this is not done and there is CGT payable then I assume that sooner or later it comes back to bite you on the bum and you pay the CGT plus interest and penalties.
Proof? - utilities, addresses on everything, confirmation from e.g. solicitor/accountant.
mf
Thank you.
I know it sounds straight forward but I'm still abit unclear.
Would it qualify if you only lived there or a very short time and if so wouldn't this encourage some investors to move into their investment properties for a few days/weeks before selling them?
So would it be right then to think that no one will ask whether the property has been rented or not in the past as long as u live there now (for however long)?
If Capital gains were due when is it due? by the end of this tax year or on completion?
Is it possible for a couple to have more than one ppr? or could you have one that you don't live in full time as you rent another property and live there for part of the year?
Sorry if this sounds so complicated but I'm finding it hard to get a really definitive answer.
I know it sounds straight forward but I'm still abit unclear.
Would it qualify if you only lived there or a very short time and if so wouldn't this encourage some investors to move into their investment properties for a few days/weeks before selling them?
So would it be right then to think that no one will ask whether the property has been rented or not in the past as long as u live there now (for however long)?
If Capital gains were due when is it due? by the end of this tax year or on completion?
Is it possible for a couple to have more than one ppr? or could you have one that you don't live in full time as you rent another property and live there for part of the year?
Sorry if this sounds so complicated but I'm finding it hard to get a really definitive answer.
I think the law is 5 years for it to be your principle private residence but if you check on the www.revenue.ie
Would it qualify if you only lived there or a very short time and if so wouldn't this encourage some investors to move into their investment properties for a few days/weeks before selling them?
Possibly - but there could be a stamp duty clawback and/or Revenue might take the view that a particular situation was so artificial that it could only be an evasion tactic.
So would it be right then to think that no one will ask whether the property has been rented or not in the past as long as u live there now (for however long)?
Well, no-one will ask but you will know and if you were declaring a rental income the lack of the rental income after the sale will become clear on your Tax returns.
If Capital gains were due when is it due? by the end of this tax year or on completion? Not on completion - but end of tax year - check with Revenue
Is it possible for a couple to have more than one ppr? Revenue don't go along with that
or could you have one that you don't live in full time as you rent another property and live there for part of the year?
Well, you could ask Revenue and see what they say or check with your accountant.
I think you think yourself that this is a CGT situation so I suggest that you take specific advice on your own particular circumstances.
mf
Possibly - but there could be a stamp duty clawback and/or Revenue might take the view that a particular situation was so artificial that it could only be an evasion tactic.
So would it be right then to think that no one will ask whether the property has been rented or not in the past as long as u live there now (for however long)?
Well, no-one will ask but you will know and if you were declaring a rental income the lack of the rental income after the sale will become clear on your Tax returns.
If Capital gains were due when is it due? by the end of this tax year or on completion? Not on completion - but end of tax year - check with Revenue
Is it possible for a couple to have more than one ppr? Revenue don't go along with that
or could you have one that you don't live in full time as you rent another property and live there for part of the year?
Well, you could ask Revenue and see what they say or check with your accountant.
I think you think yourself that this is a CGT situation so I suggest that you take specific advice on your own particular circumstances.
mf
Say you buy the house in Jan 2000 for €200k and use it as your PPR until Dec 2002 (3 years).
Then you rent it from Jan 2003 until Dec 2005 using another dwelling as your PPR (3 years).
The house value in this time rises from €200k to €400k.
My understaning is as follows (this is a very simplisitic/rough understanding):
You own the house for 6 years.
3 years as PPR, 3 years rented.
The house value rises be €200k.
50% of the time is rented (not PPR) therefore you owe CGT at 20% on €100k = €20k.
I think there is a clause stating that if you sell the house within 12 months of it ceasing to be your PPR you don't have to pay CGT.
I can be corrected on this however.
Don't take this as gospel.
If you do some searching on this site I'm sure you will find this is covered in more detail.
Then you rent it from Jan 2003 until Dec 2005 using another dwelling as your PPR (3 years).
The house value in this time rises from €200k to €400k.
My understaning is as follows (this is a very simplisitic/rough understanding):
You own the house for 6 years.
3 years as PPR, 3 years rented.
The house value rises be €200k.
50% of the time is rented (not PPR) therefore you owe CGT at 20% on €100k = €20k.
I think there is a clause stating that if you sell the house within 12 months of it ceasing to be your PPR you don't have to pay CGT.
I can be corrected on this however.
Don't take this as gospel.
If you do some searching on this site I'm sure you will find this is covered in more detail.
gocall i think you have it fairly right.
just to note there are two different periods for CGT purposes. Jan to 31st sep must be submitted and paid in the same year. and From 1 oct to 31Dec should be submitted by 31Jan I think. Its something along those lines. check www.revenue.ie
just to note there are two different periods for CGT purposes. Jan to 31st sep must be submitted and paid in the same year. and From 1 oct to 31Dec should be submitted by 31Jan I think. Its something along those lines. check www.revenue.ie