Thursday October 22, 2020

Home offices could cost workers in capital gains tax

Principal private residence relief on the sale of a home may not apply to portion of the home used for work, tax expert warns

1st October, 2020
With the increase in working from home during the Covid-19 pandemic, more tax guidance for remote workers has been called for. Picture: Getty

Workers have been warned that new home office installations could cost them in capital gains tax (CGT).

Norah Collender, professional tax leader at Chartered Accountants of Ireland (CAI) said the principal private residence relief (PPRR) on the sale of a home may not apply to the portion of the home used for an office.

“The entire home is exempt of capital gains tax if it’s your principle place of residence,” she said. “Revenue though will...

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