When is a PPR your PPR

A

adviceplease5

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Is there a mimimum period of time that you must live in a house in order for it to be considered your PPR upon selling the property ?

i.e. not liable for any tax penalties such as stamp duty or any others ?

My situation is that I am currently living in my PPR while the house I am buying is being constructed. I propose to move into the newly constructed house as soon as it is ready and do it up before selling it on. This is where my question comes from - how long must I live in it before I can sell it without paying any taxes ?

I eagerly await any replies - thanks.
 
I don't believe there is any fixed duration in the regulations. Things to be aware of are;

- You can only have one PPR at a time. So once you move into the new house, your old house ceases to be your PPR. When you sell it, you will have a CGT liability. Note that there is an exception for the final 12 months of ownership, so you effectively have 12 months to make the sale.
- If you were to do this build/move/sell repeatedly, Revenue could form the view that you were effectively trading as a property developer and tax your profits as income.
 
This is a grey area as far as CGT is concerned. I can only talk in relation to building a property and selling it while avoiding CGT (avoid not evade) although Im sure the timescale is the same no matter what your question relats to. Generally you must be seen to live in the property for between 1 and 2 years if it is a new build in order for it to become your PPR. So 18 months seems to be the unwritten rule. Bills showing you have lived in it are also nececcary to prove to the Revenue, so keep all heating, electricity phone bills etc.
As Rainyday says tho, doing this repeatedly, the Revenue may take the view that is is a business and therefore you would be liable to pay income tax on your profits.
 
thanks for replies

If I was to move back to my PPR after the sale of the new house (say 18 months later), how much cgt would I have to pay if I was to sell the PPR ( i.e. my present PPR)?

Is it a standard 20% or is it proportional to the amount of time I lived in it?

cheers
 
Sounds like a wheeze that would fall foul of the Revenue's general anti-avoidance powers.
 
...and existing tax case law precedents relating to this specific area.
 
PPR

Is it possible to have a PPR in Ireland even though I am a non resident .

I have recently build a house in which I know live part of the year , I also plan to build two more houses for sale within the next two years , I am a resident of Switzerland where I have worked the last five years . There is no CGT there on shares , have to check if there is on property sales.

Does this exempt me from capital gains on selling property here, or am I still liable on CGT arising from the sale of a property here.

I also have the same question relating to the CGT on the sale of a share in an Irish company.

Any tips , answers greatly appreciated.
 
Re: PPR

I think if you're non-resident that the property is always viewed as an investment - mortgage would be commercial/buy-to-let type, which you should be able to convert to residential.
 
Re: PPR

...and existing tax case law precedents relating to this specific area.
Click to expand...
Tommy, could you possibly elaborate a bit on this point?
 
Re: PPR

There is case law in the tax code to the effect that if the primary motivation of an individual in acquiring and subsequently selling a PPR is to make a profit, then that profit is taxable.

As with all case law, the devil is in the detail and if this matter is of practical concern to you, you will need to seek appropriate professional advice.
 
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