Capital Gains Tax indexation and Mortgage taken?

[flexigrip]

HI

Fist time on this forum, I wanted to know when disposing of an investment property, do the revenuer give CGT relief if it was a primary residence for a period? and if so how is it calculated? Secondly, when calculating a CGT liability, on a property purchased 5 years ago, how is it treated (in terms of indexation) if 80% of the value at the time was borrowed and subsequently 15% of the borrowed capital was repaid? This may be a very simple question put very awkwardly but I hope you understand what I mean.

Thanks

 

[ClubMan]

See this thread on first question. In relation to your second question the mortgage is irrelevant to the determination of the purchase price of a capital asset.

By the way - if you bought the property as an owner occupier and then rented it out (other than under the owner occupier rent a room scheme) within five years of purchase then you are also liable for a clawback of stamp duty as mentioned in the thread linked above.