Calculating CGT

G

GFC

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Just selling property I have rented out for the past couple of years. In calculating my CGT are there any costs allowable against the capital gain such as estate agent fees for selling the property, legal fees etc. Also, is the gain index linked at all or is the gain all taken at todays value. Also does the CGT need to be paid this October or October '05
thanks
 
In general, any costs that you did not get a deduction for regarding the letting is deductible so costs of acquisition; related costs of acquisition; enhancement expenditure and costs of disposal are all deductible.

Some of these are 'indexed'. But indexation ceased on 31/12/02 (I think)

Regards
 
Correct me if I am wrong but I thinik I saw someone mention
on this site that renovation expenditure incurred in the 12 months prior to sale was not allowable as a set off against CGT but was claimabl against your Income Tax liabiity -perhaps one of the financial commentators on site could clarify this as I am not 100% sure about it ?
Did anyone mention when CGT should be paid ?
 
expenditure of a revenue nature is allowed in the year of assessment, i.e. expenditure that isn't of major nature. this would include repairs, small purchases of fixtures and fittings etc. This would not be allowed in a CGT comp

expenditure of a capital nature such as hiring someone to build an extension which ultimately leads to the enhancement in value is allowable in a CGT comp.

indexation ceased for houses purchased after 31 December 2002. however a sale of a house in 2005 when originally purchased pre Dec 02, will avail of indexation on both original cost of house and any expenditure of a capital nature at the 02 rateof indexation.

expenses such as professional fees are allowed both for the sale and also can be used as addional original costs (these also can be indexed).

check the revenue website for the appropriate index.

disposals of property between January and September must be included as a payment of CGT by 31 October. anything after that can be paid by 31 January following
 
Thanks for that Gongey -I am not sure whether the instaslation of a new kitchen and bathroom are items "of major expenditure" for Revenue purposes -it certainly cost over€5,000 -I would not regard it as minor -any further comments on this ?
 
however the installation of a new kitchen and new bathroom could be viewed as adding value to the property. i would treat this as capital expenditure certainly if over 5,000, unless it could be shown that the renovations or improvements were just repairs. with revenue this can be a tetchy topic. . some people will differ over this treatment
 
Anyone any further experience of the Revenue interpretation of items of a capital nature and minor nature for the purposes of CGT computatation
 
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