Quick Capital Gains tax question!

If you rent out your PPR for a few years, then move back in yourself for a few years and then sell the property, are you liable for Capital Gains Tax?

Yes,
You are liable for the gain in proporation to time rented less 12 months assuming you sell at a profit. If sold at a loss you are not liable to CGT
Don't forget to deduct buying and selling exps incl stamp Duty if any

e.g.
Bought 300K
selling 350
period rented 6 years
Period of ownership 10

profit 50K * (6-1) /10 = 25 liable to CGT

If you had to let the property because you were working abroad, or were moved to an employment elsewhere in Ireland (for up to 4 years) , and lived in the property immediately before and afterward, those periods count as if you had been living in the house.
If either of those situations apply that would change your CGT calculation to reduce any CGT liability.

Gervan, does the 4 year limit apply only to situations when you moved to work within Ireland, or to working abroad also?

I think the move had to be forced ie not made out of choice eg your employer sent you to work elsewhere.

Greta, No time limit on the working abroad, nor must your employer have transferred you there.
"Any period of absence throughout which the individual worked in an employment of office all the duties of which were performed outside" Ireland.
But before and after the absence the house must be llived in as your private residence.

Thanks, Gervan!

asdfg said:

Yes,
You are liable for the gain in proporation to time rented less 12 months assuming you sell at a profit.

Click to expand...

It's actually the final 12 months are treated as PPR even if the property wasn't used as ppr for that period. If it was used as PPR for the final 12 months then no benefit from this rule.

Case 1: bought house Jan 2001, lived there until Jan 2005, moved back in Jan 2007, sold house Jan 2011.
Total ownership = 120 months
PPR = 96 months
final 12 months of ownership already qualify for PPR relief

Case 2: bought house Jan 2001, lived there until Jan 2009, sold house Jan 2011.
Total ownership = 120 months
PPR = 96 months plus final 12 months = 108 month

Sybil