Principal Private Residence

The sale of a principal private residence is exempt from the tax. The exemption applies in full only if it has been used as the seller’s sole or main residence throughout his period of ownership. The residence must be a dwellinghouse and land up to an acre.

A person can only have one principal private residence at a time. A married couple may have one principal private residence only.An individual or married couple, living together may choose to have notify one property as his or her principal private residence. The relief also applies to a property occupied by a dependent relative.

The relief also applies to a dwellinghouse which during the period of ownership is used as as the sole residence of a dependent relative rent-free. Only one such residence may qualify.

Where person is beneficiary under a trust settlement and occupies a property part of the trust/settle assets as principal private residence then these relief is available to the trustees of the settlement on disposal.


Where a property has not been used as a principal private residence throughout the whole period of ownership, then part of the gain, proportionate the period of occupation during ownership is exempt. Periods prior to commencement of CGT taxation in 1974 are ignored. Only the  proportionate period since the legislation was then is counted.

There are special exemptions, which count back part of the period when the property was not occupied, because he was obliged to work elsewhere as a condition of employment. The total periods or periods of employment absences, must not exceed four years. The  last twelvemonths is deemed to be occupied, but the persons must reside in the property again after the end of the period away.

Development Potential

The relief does not apply where any element of the value of the property reflects potential development value. There is deemed to be development value where the value of the land is different to that  which it would be, if any change of use or works were prohibited. This excludes all element of hope value.

Where there is hope value due to potential planning permission this is excluded from the exemption. The current use  value only is exempted.

Transfer of Site to Child

A transfer of land to a child is exempt, subject to certain conditions;.

  • the value must not exceed €500,000;
  • the site must not exceed 1 acre in area; and
  • the purpose must be to construct a dwelling house as a residence.

A child is deemed to include a foster child residing with and under the care and maintenance of the person making the disposal for at least five years in total before the person reached the age of 18 years. A child is also deemed to include the  spouse or civil partner of the child concerned.

The relief applies  transfer of a site by a parent (or both parents simultaneously) to a child of the parents or one of the parents or on the transfer of a site by a civil partner (or both civil partners simultaneously) to a child of either civil partner.

Both a child and his or her spouse/civil partner may avail of the relief. The amendment will apply to disposals made on or after 1 January 2019.


The relief may be clawed back (retrospectively disallowed) if the child does not comply with conditions. The clawback will be assessed on the child.

Clawback may occur if the child disposes of the site received other than to his or her spouse and land does not contain a dwelling house constructed by the child since the acquisition which has been occupied by the child as his only or main residence for a period of at least three years.

The relief is available once for a transfer between parent and child in the absence of clawback.

Seven year Holding

FA 2012 introduced a new CGT relief for properties purchased between 7th December 2011 and 31st December 2013, where the property is held for more than seven years.  It applies to land or buildings situate in an EU or EFTA state.  The gain is relieved by the proportion that the period of seven years bears to the period of ownership

The  relief was amended by Finance Act 2017. Full exemption from capital gains tax is given where the asset is  are disposed of in the period commencing four years from when they are acquired and ending seven years after that date. This applies to disposals made after 1st January 2018.


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