Dáil Éireann Debate, Wednesday - 19 September 2018
61. Deputy Michael McGrath asked the Minister for Finance the position regarding capital gains tax and the application of principal private residence relief (details supplied); and if he will make a statement on the matter. [37959/18]
View answerI am advised by the Revenue Commissioners that any gain made by an individual on the disposal of a dwelling house which has been that individual’s only or main residence together with land occupied as its gardens or grounds up to an area (exclusive of the site of the residence) of one acre is exempt from capital gains tax (CGT).
For full relief to apply, the dwelling house must have been occupied by the individual as his or her only or main residence throughout his or her period of ownership of the house. Where the house is not so occupied during the whole period of ownership, only the proportion of the gain applicable to the period of occupation is exempt. In this regard, the dwelling house is treated as having been so occupied for a period of 12 months after the cessation of occupation of the dwelling house by an individual. In addition, an individual may qualify for exemption on the first €1,270 of any gain in respect of the period after such individual ceased to reside in the house.
Should further information regarding the CGT implications of the sale of the dwelling house be required, the individual may contact the tax district dealing with his tax affairs directly who can provide further information specific to the circumstances.
