When is a property a residence for CGT purposes?

Establishing a property as a main residence can be very advantageous in reducing capital gains tax. So actually determining when a property is a residence can make a huge difference to your tax bill. Residence is not defined in the legislation, however the Revenue expect a degree of permanence, therefore occupation for only a handful of days each year would not constitute residence. Whilst drawn from a different context (in connection with the availability of mortgage interest relief) a Revenue extra statutory concession suggests that a period of occupation of not less than three months is required to establish a property as the only or main residence. There are no hard and fast rules as to how long to occupy the property before it can be classed as a residence. Some commentators suggest occupying a property for a period of 12 months, although there is no fixed period set by the Revenue and they frequently refer to the 'quality' as opposed to the 'quantity' of the occupation. It is important to ensure that the residence is genuine. For example the property should be your registered address for the electoral register, and your employers should be informed of the new address. See these article for more information: Making a property your main residence in 2008 Establishing a main residence