Q&A

A selection of your property queries answered

Avoiding Capital Gains Tax

I built a house in Clare (where I am from) with the intention of living in it as my permanent residence. Before moving in, my circumstances changed and I moved to Dublin full-time, for work reasons. I have been renting in Dublin since then. My Clare house was rented out very periodically. I now wish to sell it and buy in Dublin as I will be based here permanently. I have been told that I will have to pay Capital Gains Tax on the sale of my Clare house. I must stress that the house in Clare is my only house and I had to move for work reasons. I did not set out to become an investor and can't understand why I would be treated (punished) as one. Is there a way around this?

You are liable for Capital Gains Tax on the sale of your Clare house as, while there is an exemption from the tax due to work commitments, it doesn't seem to apply to your situation. For full relief to apply, the house must have been occupied by you as your principal private residence throughout your period of ownership during which time you can work abroad or be otherwise absent for a period of time which the Revenue describes as "not exceeding in the aggregate four years because of the situation of an individual's place of employment or an obligation of the individual's employment to reside elsewhere". Any such periods away from home are treated as periods of occupation of the principal private residence if, both before and after those periods, you return and live in the house as your only or main residence. If you worked on contracts that took you away from home from time-to-time, then once those periods did not exceed four years when added together, and you lived in the house before and after the absences, then you would be exempt from CGT. But you have never lived in your house nor intend to, so it very much looks as you have no option but to pay the tax.

Warning letter from council

We are completing a small single-storey extension in our large back garden. Then, out of the blue, we got a letter from the county council - a quite threatening warning letter - looking for details of the "development" because there had been a complaint. The technician who drew up the plans (two years ago) said that because of the size we didn't need to apply for planning permission - which we subsequently checked and know to be the case. We have no contact with him so can't ask for his advice, so what should we do?

These warning letters look terrifying but what has most likely happened is that a neighbour has complained to the council about your extension. These warning letters are form letters - so don't take the tone personally. People complain to the planners about the strangest things - an extension that is "too modern" or that there's "too much glass". From the council's point of view, for all it knows you could be building a football stadium in your back garden - you didn't apply for permission so the planners don't know what's going on. Contact the planning department by phone. You won't be told who made the complaint but you will be given an idea of the nature of the complaint. Submit a copy of your plans to the council as requested in the warning letter. They may send an inspector out to check the extension.

Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.

Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.