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Home economics: Our property finance expert answers your questions

Q I moved back in with my parents in 2017 after my marriage separation as it suited us all. They are frail and I needed to leave my house for personal reasons as my ex-husband still resided there. Our divorce is now finalised (it was delayed due to Covid-19), my father died in the meantime and my mother will probably be moving into a nursing home in the new year. I have no wish to move back to my marital home and we have agreed to sell it as part of our divorce agreement, and I will use my half to do up my parents’ house and live here permanently. My solicitor says I may have a tax issue — what is the consequence?

A Marian Ryan, Consumer Tax Manager, Taxback.com, says your solicitor may be referring to Capital Gains Tax (CGT), which is payable on any profit you make on the disposal of an asset. There is normally a derogation given if that ‘asset’ is your principal private residence (PPR), which is generally exempt from CGT.

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