I own a house, no mortgage, and am currently living in rented accomodation elsewhere in the country (work commitments). The house is occupied by my parents rent free. My parents pay the council tax. This arrangement is likely to continue for the forseeable future. Am I liable for any taxes/do I need to inform the IR?
As long as you are not getting paid, you do not have to pay taxes. However you will need to consider capital gains tax when you sell the house. Usually a person does not need to pay taxes on gains made from selling a house if the house is their normal place of residence. Hoever if you are not living there, the gain will be aportioned according to years of ownership, between having occupied and not occupied the dwelling. The last three years of ownership are always considered as if you have lived in the house. |
