Capital gains on property (partial PPR relief) questions

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Cameo

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Ok

ill be getting professional advice but was hoping I might get a steer as to calc.

Two questions.._

details

purchase price €437k october 2004
sale price €625k Feb 2023

house was ppr from 2004 to 2013 so say 9 years
rented for say 10 years
last year is deemed occupancy so say 9.5 years ppr and 9.5 years rental

question 1

am I correct that CGT is approximately

33% ( 50% of the gain less annual cgt exemption less allowable expenses (e.g. estate agent fees, legal fees, stamp duty)

i.e. the main bit I am looking for comfort on is that the cgt liability is roughly halved to reflect the fact that the house was PPR for roughly half of the period of ownership?

question 2

I assume any money spent on the property while it was my PPR e.g. €40k on a small extension, fitted wardrobes, etc. cannot be used to claim CGT relief?

thanks for any replies
 
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Cameo said:
question 1

am I correct that CGT is approximately

33% ( 50% of the gain less annual cgt exemption less allowable expenses (e.g. estate agent fees, legal fees, stamp duty)
Click to expand...
You have the annual CGT allowance in the wrong place.
You calculate the CGT due and only then subtract the allowance.
Cameo said:
question 2

I assume any money spent on the property while it was my PPR e.g. €40k on a small extension, fitted wardrobes, etc. cannot be used to claim CGT relief?
Click to expand...
That's correct.
I may be mistaken - see below.
 
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Just wondering, would the extension not count as an 'enhancement'?

What are ‘allowable expenses’?​

They are costs that you can deduct from the sale price to work out your chargeable gain. These can be:
  • any money spent by you which adds value to the asset (known as ‘enhancement expenditure’)
  • costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset.
(Revenue website)
 
mct1 said:
Just wondering, would the extension not count as an 'enhancement'?

What are ‘allowable expenses’?​

They are costs that you can deduct from the sale price to work out your chargeable gain. These can be:
  • any money spent by you which adds value to the asset (known as ‘enhancement expenditure’)
  • costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset.
(Revenue website)
Click to expand...
Sorry, I may have been mistaken alright... :confused:
 
i Wonder if enhancements only applies if they were made when the property was let

i would benefit To the tune of €20k If it applied to any enhancements Made when it was my PPR

I’m even keener to know the answer now
 
THe Personal CGT allowance is subtracted from the Taxable Gain before calculating the tax due - not from the tax due
 
Cameo said:
i Wonder if enhancements only applies if they were made when the property was let

i would benefit To the tune of €20k If it applied to any enhancements Made when it was my PPR

I’m even keener to know the answer now
Click to expand...
There's no mention of renting regarding "allowable expenses". I'm fairly sure they relate to CGT wherever it applies. A common reason for being subject to CGT would be the sale of a second property that's not your PPR and not rented out.
https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx
 
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mct1 said:
There's no mention of renting regarding "allowable expenses". I'm fairly sure they relate to CGT wherever it applies. A common reason for being subject to CGT would be the sale of a second property that's not your PPR and not rented out.
https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx
Click to expand...
Thanks for the reply, fingers crossed it's allowable, it kinda feels like it should be. I'll post back whenever I finalise the cgt, will be getting advice so as to be sure
 
Any enhancement expenditure would be allowable when calculating the gain irregardless of when they were occurred

The devil is in the detail as to what's an enhancement expenditure and what's just maintence expenditure and thus not an allowable expense for CGT purposes
 
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