Should I sell the NPPR inherited home

[Aineyoung]

Hi

I planned to sell the family house I inherited from my parents ( rip x 6 years, ) was was prepared to pay the very substantial CGT etc...as it was anon prinicipal Private residence.

Alas, the sale has fallen through , and I am back reconsidering options.

If I move into this older house, for 5 years and make it my PPR, l The I avoid CGT when I sell it in 5 years .

. meanwhile, if I rent my own house in these 5 years, (PPR ) what tax am I liable to pay?...when I move back to it in 5 years ? as Im assuming I have to live in this house for another 5 years anyway ...if we decided to downsize in time ..

I feel this whole area is a tax minefield , and I have to look at all options as to what's best to do.

(Did i mention a son with a family and young baby who is dithering over returning to move home. ...another spanner in the works.)

Any light shed on this, and if others have been in this situation/..Id be very grateful to hear.

much Thanks

Aine

 

[skrooge]

I'm open to correction but my understand of CGT on NPPRs is the last 12 months of ownership is disregarded but after that you still pay CGT based on the share of time your owned the property and it wasn't your PPR.

So you sell it now you pay CGT on 5/6ths the gain and nothing on your current PPR.
or
You move houses and in 5 years your CGT bill would be 5/11ths of that future value of your inherited home and 4/Xth on the increase in value in your current home. Where x is the number of years you will have owned your house, in 5 years time.

For the inherited home the increase in value/CGT liability will be based off the sales prices less the valuation at the time of inheritance. For your current PPR the increase in value/CGT liability would be based off the future sales price less what you initially purchased it for.

Principal Private Residence (PPR) Relief

This is an explanation of what relief on cgt is available for a Principal Private Residence (PPR)

www.revenue.ie

 

[NoRegretsCoyote]

Any light shed on this, and if others have been in this situation/..Id be very grateful to hear.

For both houses you'd have to provide year of purchase, value at purchase, value on inheritance, value today.

Without that no one can meaningfully advise.