Principal Private Residence (PPR) Relief An individual’s PPR is a house that his/her sole or main residence plus land around the house of up to one acre. A person or married couple cannot have more than one PPR at any given time If he/she/they have two residences they must nominate one as their PPR. Except where a house is provided rent-free for use by a dependent relative

Principal Private Residence (PPR) Relief Calculation of PPR Relief The extent of the relief will depend on how much time the person occupied the house as their main residence during the period of ownership. If the person lived in the house for the entire time of ownership then the full gain is exempt. If there were periods of absence the PPR will be reduced. First step is to calculate the gain as normal.

Principal Private Residence (PPR) Relief Calculation of PPR Relief First step is to calculate the gain as normal. Exempt part of the gain is calculated as follows: Gain x Period of occupation/period of ownership Period of ownership is total amount of time from date of purchase to date of disposal Period of occupation is made up of periods of actual occupation plus periods of deemed occupation

Principal Private Residence (PPR) Relief Calculation of PPR Relief Periods of deemed occupation Any period during which the individual worked abroad Any period not exceeding four years during which the person was obliged to live elsewhere in Ireland as a condition of their employment. The last 12 months of ownership as long as the house was a PPR at some point during ownership.

Principal Private Residence (PPR) Relief Calculation of PPR Relief Periods of deemed occupation Periods of deemed occupation where the individual is working elsewhere in Ireland and abroad will only apply where: The house is occupied by him/her as a main residence both before and after the period of absence. He/she has no other residence qualifying as a PPR during the period of absence.

Principal Private Residence (PPR) Relief Calculation of PPR Relief Periods of ownership and occupation prior to 6 April 1974 are ignored as the calculation of the gain will only be from 6 April 1974 (market value on this date is base cost)

Principal Private Residence (PPR) Relief Calculation of PPR Relief If the home is used for trade or professional purposes, the relief will be reduced. For instance, if 20% of the property was used for business purposes, PPR can only apply to 80% of the gain.

Principal Private Residence (PPR) Relief Restriction in the case of development land PPR does not apply to the part of the gain reflecting ‘development value’ Gain is calculated in the normal way Gain is reduced by PPR However, PPR is calculated only reference to the gain which would have arisen if the property was bought and sold for the price ignoring development value