
Will my mother be liable for capital gains tax if we sell her house on her behalf?
This means that my mother's house will be empty but we would prefer to see someone living in it. Reading a previous
Property Clinic on renting out a parent's former home
, which detailed the significant responsibilities of becoming a landlord, discouraged me from the rental option.
If we sell the house on behalf of my mother and then put the proceeds into her bank account, will she be liable for capital gains tax? Also, would it have an impact on her Fair Deal payments for her nursing home?
We have considered the Capital Gains Tax (CGT) position in the context of this query. CGT is a tax you pay on any profit made when you dispose of an asset.
READ MORE
There is a relief from CGT on the sale of a person's principal private residence (PPR), which broadly applies to a house (and garden up to one acre) that was owned and occupied as a person's only, or main, residence through the period of ownership. PPR relief can be restricted in certain circumstances, for example, where the house was partially used as a business or if the sale comprises development value.
There is an apportionment of the relief if the house was not always occupied as a PPR. In this context, there is a period of grace whereby the last 12 months of ownership can be considered as a period of qualifying occupation even though not lived in, while the property is being sold.
[
What do I need to know in order to rent out my parents' former home?
Opens in new window
]
For the purpose of the relief, Revenue will also allow certain periods of non-occupation to qualify for the relief as deemed occupation. One of these deemed occupation periods includes the situation where the owner was either:
receiving care in a hospital, nursing home or convalescent home or
resident in a retirement home on a fee-paying basis
The Revenue Commissioners state in their guidance that where the house was occupied rent-free, during a period of absence by a relative of the claimant, for the purpose of security or maintaining it in a habitable condition, the relief can still apply.
Fair Deal implications
Published guidance on the Fair Deal scheme sets out that an individual's home will be removed from their financial assessment after they have been in care for three years. It also sets out that if the home is sold while in care, the net proceeds of the sale will also qualify for the three-year cap. However, we would advise you
contact your local nursing homes support scheme office
to confirm the position prior to the sale as this is a very specialised area.
Suzanne O'Neill is a tax partner at
RSM Ireland
Do you have a query? Email
propertyquestions@irishtimes.com
This column is a readers' service. The content of the Property Clinic is provided for general information only. It is not intended as advice on which readers should rely. Professional or specialist advice should be obtained before persons take or refrain from any action on the basis of the content. The Irish Times and it contributors will not be liable for any loss or damage arising from reliance on any content
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Irish Times
27 minutes ago
- Irish Times
Profits rise at Cashel Blue producer with aims to fund further capital investment
Profits rose at Cashel Farmhouse Cheesemakers, the producer of the famous Cashel Blue cheese, with the company aiming to use the surplus to fund further capital investment. J & L Grubb Limited, the company behind the brand, recorded profit of more than €960,000 in the 2024 financial year, according to filings made to the Companies Registration Office. This followed a profit of €951,000 in 2023. A spokesman said the company was 'building reserves to allow continued investment' after it made a 'huge capital investment' in 2010. The Cashel Blue brand was created by Louis and Jane Grubb in 1984 and has continued to be made by hand on the same farmland since it was founded. It is based in Fethard, Co Tipperary. READ MORE The brand is now led by a new generation of the family: the founders' daughter and her husband, Sarah Furno and Sergio Furno. Speaking to The Irish Times, the spokesman said that 2023 was a 'particularly good year' with the company having benefited from a 'post-Covid bounce', which he said benefited the food sector generally. In 2024, however, a sharp increase in milk prices forced the company to 'change its pricing slightly' as farmers were hit by a wetter than expected start to the year, which disrupted dairy volumes and price. 'Every cost has gone up. You name it and everything has gone up,' the spokesman said, with the family business seeking to retain a 'simple philosophy' of trying to build the company sustainably in order to be able to 'make the next step.' 'We are a sustainable, family-based rural business trying to hire people from the locality. We use locally produced milk, and hire our labour locally as much as possible.' The majority of the business' sales are domestic, around 70 per cent, with the balance exported to other markets. While tariffs may impact the company's exports to the US, they only have a small portion of their exports exposed to that market. The market turmoil, however, has created 'opportunities' for the company as there is interest from new markets in their product as people are 'now shy of buying American', the spokesman said. Accumulated profits stood at €9.2 million, with more than €500,000 in finished goods in stock by the end of 2024. The company had 22 employees in 2024, down seven from the year prior.


Irish Times
an hour ago
- Irish Times
TD Gary Gannon files legal proceedings against Central Bank over Israeli bonds
Social Democrat TD Gary Gannon has filed legal proceedings against the Central Bank over its role in facilitating the sale of Israeli bonds on the European market. McGarr Solicitors lodged papers with the High Court on behalf of the Dublin Central TD on Thursday. Mr Gannon is seeking a court order requiring the Central Bank to exercise its powers under European regulations to prohibit the marketing, distribution or sale of bonds issued by the state of Israel. Court papers show he is also seeking an order requiring the bank to 'properly consult' with the 'competent authorities in other member states that may be significantly affected by the action'. READ MORE In a draft affidavit to the court Mr Gannon said he believes and is advised that the investors in, and holders, purchasers and sellers of Israeli bonds risk being 'complicit in genocide, with various implications for them'. [ Israeli bond investors risk complicity in genocide, TD claims in letter to Central Bank governor Opens in new window ] There have been ongoing calls for the Central Bank to end its role in approving Israeli bonds for sale in the European Union. The bank is the designated authority in relation to the sale of Israeli bonds in the EU. The Central Bank's governor, Gabriel Makhlouf, told the Oireachtas Finance Committee last month that Israel has raised between €100 million and €130 million from the bonds. He said the Israeli government website marketing its 'war bonds' had stated it had sold bonds worth €5 billion. He said the EU accounted for only a fraction of that, with the US accounting for the bulk of it. On what the bank can and can't do, he said: 'The Central Bank cannot decide to impose sanctions for breaches or alleged breaches of international law. It is for international bodies such as the UN or the EU to determine how to respond to breaches or alleged breaches of international law.' Mr Gannon issued letters to the bank about investor protection concerns relating to the bonds, as well as the use of the bonds to finance the war in Gaza at the end of last month. In response, the Central Bank, through its solicitors, said in a letter that there is 'no valid legal basis' to support Mr Gannon's purported judicial review proceedings. It claimed that Mr Gannon lacked the 'necessary locus standi' or right to bring the proceedings, and said the bank was satisfied it did not meet the relevant criteria to exercise its powers under EU law. The letter also stated that judicial review proceedings would lead to court time being 'expended unnecessarily and substantial costs being incurred'. [ Central Bank's role in approving Israeli bonds can be traced back to Brexit Opens in new window ] Commenting on the action, Mr Gannon said: 'These bonds are not neutral financial instruments. They are a funding pipeline for a military campaign that includes the bombardment and starvation of thousands of civilians. 'While this is a technical case grounded in EU investor protection law, the issues at stake are deeply moral and ask whether our laws, Irish, European, and international, have the capacity to respond to that reality.' He added: 'If financing a regime accused of genocide doesn't meet that threshold, what does?'

Irish Times
an hour ago
- Irish Times
Smyth's pub in Dublin 4 set to be demolished and replaced by apartments and a new bar
An Coimisiún Pleanála (ACP) has given the green light for plans to demolish a Smyth's pub on Haddington Road and replace it with a bar and apartments despite locals' fears of a 'superpub' being developed. The appeals board has granted planning permission despite concerns expressed by the Pembroke Road Association and by R John McBratney and others in their appeals lodged against the decision to grant by Dublin City Council to Courtney Lounge Bars Ltd. This entity now has permission to demolish all existing buildings on site at 10 Haddington Road and construct a four-storey and part five-storey mixed-use building comprising a pub at basement level and ground floor, and six residential units on the upper floors. In the case, ACP has granted permission for the scheme due to its proximity to a wide range of community services and social facilities, the existing pattern and character of development in the vicinity, and the design, scale and layout of the proposed development. READ MORE [ Dublin 4 residents bring renewed objections to Smyth's pub renovation Opens in new window ] The board stated that subject to conditions, the proposed development 'would constitute an acceptable quantum of development in this accessible urban location, and would not seriously injure the residential or visual amenities of the area or detract from its character or built heritage'. The board has ordered that the pub's outdoor seating area shut at 10pm each night as part of the conditions attached. The board granted permission after its inspector in the case, Ian Boyle, concluded that 'the design approach adopted by the applicant demonstrates sufficient privacy and residential amenity will continue to be afforded to adjoining and nearby properties'. As part of his 44-page report, Mr Boyle concluded that 'the proposed higher density mixed-use development would make a positive contribution towards the evolving urban character of this urban area'. Mr Boyle stated that 'the new customer area would be marginally smaller than the corresponding area for the existing licensed premises- 140 sqm existing vs 134 sqm proposed. He said the modern fit out of the new pub would be required to provide enhanced sound insulation consistent with present-day building regulations. 'This would lead to a reduction in noise levels generated during busy periods by blocking or absorbing sound waves. This would benefit existing nearby homes and residents, but also the future occupants of the above apartments,' he said. In response to the plans initially lodged, the Pembroke Rd Association told the council that 'a local pub can be a wonderful social amenity in a mixed residential area, as Smyth's has been over the years, but a 'super' pub in the same type of area is a problem'.