Move back in?

Hi there,

Wonder if anyone can help me. I bought a house a few years back and a couple of years ago I moved out and rented the house as I was moving overseas. The tenants are moving out in the next couple of months and I’m thinking of selling the house (I know I should have done so when first moved out but better now than too late I suppose!).

I’m wondering what capital gains tax I will be liable for and is there any way to reduce the charge? The house will likely get me more than what I bought it for so, if I’m treated as an investor, I presume I’ll be caught for CGT (21% ?) on any gain? But the price will be less than that the house was valued at when I moved out - does this do me any good? I got an estate agent valuation before I moved out if this is any good. Finally, I might be able to move back in for a few months as the house is being sold - will this do me any good? Is there a certain amount of time you have to be back in the house to stop being treated as an investor? Probably can’t wait too long as prices only going one way!

Thanks.

Just so I’m clear, you can sell the house at a profit and you’d like advice on how to avoid paying tax on those gains?

There were changes to the stamp duty ‘clawback’ system over the past 3 years …it was reduced from 5 years to ??? dunno any more.

There are leaflets on revenue.ie explaining clawback .

Living in it at time of sale may help but read the ‘clawback’ conditions yourself and also note CGT treatment for a PPR ( no CGT) and a property ‘deemed’ to be an investment ( 20% CGT minus credits for when you lived there at times ) as you do not live there right now.

You are advised to spend €100 on half an hour of good tax accountant to double check your assumptions !

Were you in employment abroad for the entire time the house was rented out? If so and you move back in now the house will still be considered to be your PPR while you were working abroad evn though it was rented out.

What’s wrong with that? He wants to lose as little money on selling as possible. I don’t see the harm in asking people who seem to know a lot about property a question like this.

AFAIK, CGT is charged on the % of time you rented out- not when you did the renting. E.G. If you rented out your house for 50% of the time you owned it and its value increased,say 100,000 in the time you owned the property, you will owe 20%(cgt) on the 50% i.e. €10,000 CGT. HTH

As mentioned above you’re way better talking to a tax accountant than an internet forum in a situation like this.

Pay your tax,

mod edited to spoil admittedly lame gag

my consience with your attempt to avoid tax

:laughing:

You pay tax on any gain while the house was rented. Difference between value when you left and when you sell. AFAIK, the exemption for employment is only when you are required to relocate - guard, army, corporation etc. Last year all treated as PPR. Talk to an accountant.

Paying tax in accordance with the law is not evasion.

and as he was out of the country were his tenants paying withheld tax on his behalf like they are supposed to?

You dont have to do that if the landlord has appointed someone as their tax agent.

Thanks Grumpy .

Other than the professional advice (s)he requires I believe all variables have been covered , Locking .