CGT - If not sold within a year

[Thrifty1]

Myself and DH have an apartment , its up for sale a year now. We purchased a new home in May 07. From what i understand there is an exemption from CGT for a period of 12 months from the date it ceases to be your PPR.

Does this mean that if we do not sell the apartment BEFORE May 08 we will be liable to CGT when we do sell it, regardless of the fact it hasnt been rented, etc.

Many thanks.

 

[HighFlier]

Yes

 

[Nige]

Yes, but the taxable part of the gain will be time apportioned, so you won't be taxed on the full gain.

 

[HighFlier]

Correct. Pro rata to the time spent unoccupied.

 

[Thrifty1]

Correct. Pro rata to the time spent unoccupied.

Thank you. Im not quite sure i understand.
For example say the apt cost €180k and we sold it for €230k = profit of €50k
So €50k @ 20% = €10k CGT?

How should i calculate it?

Many thanks.

 

[asdfg]

Calc as gain * lenght not as PPR / lenght of total ownership

Property Purchased as PPR for 180K in may 06
Moved house to another PPR May 07
Sell for 250K Aug 08

50K * 16\ 28 = 28.57K * 20%

You can also deduct purchase & selling costs in calc the gain

If you do decide to let the property and you own it less than 5 years you will have to pay clawback stamp duty

 

[Thrifty1]

I understand now, thank you very much asdfg.