Hi
I bought a house back in 1999 for around 100,000 euro. I have no remaining mortgage left on this property. This year I have moved to the other side of Ireland and am considering buying a new property here.
If i buy the new property which is 80 sqm I believe I do not have to pay any stamp duty as its just built and will now become my principle residence. Am I correct in saying this.
I have rented out my existing property so if I decide to sell this in the future I belive I will have to pay CGT on the difference in Sale and Purchase Price for the amount of years it was rented for. As the House is now worth 260,000 it means I have a profit of 160,000. If I rent it out for 2 years that means it has been rented for 2 out of the ten years which means I will have to pay CGT on one fifth of the profit (33,000) Is this correct and if so it's not very fair as the profit was made when I was living in the house. I don't see it going up any more in the current climate.
My third question is if I remortgage my existing property for 220,000 to fund the new property can I claim interest relief on it and also can I offset the interest I pay on it against the rental income.
Thanks