Capital gains tax on selling property

J

johnnyl

Guest
I have a house which i purchased 11 years ago and it was my principal private resicence for the first 6 years . It has been rented out for the past 5 years and i am now thinking of selling it . My question is will i get relief for the first 6 years in capital gains tax and only be charged CPT on the value increase since i moved out and rented the house?
 
You will bet relief on part of the gain for the years it was your PPR. However you do not take the value when you moved out. You take the original cost (indexed for inflation per Revenue CGT inxed to 2002 when the index was abolished) and any enhancement expenditure over the period. You then take the net proceeds of sale ( selling price less legal / auctioneering etc. ), ignoring any mortgage. The difference is the chargeable gain. You are then relieved for the 6 years of residence and the final 12 months ownership. So the relief would be on 7/11 of the gain. CGT would be due on 4/11 of the gain.
 
Thanks for the reply . Are you saying that if the house was worth €100,000 when i bought it , €150,000 when i moved out and €210,000 when i sell it , i will end up paying 4/11 of the total gain . IE 4 /11 of 110,000 = €40,000 Thanks
 
johnnyl said:
Thanks for the reply . Are you saying that if the house was worth €100,000 when i bought it , €150,000 when i moved out and €210,000 when i sell it , i will end up paying 4/11 of the total gain . IE 4 /11 of 110,000 = €40,000 Thanks
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The €100,000 will be indexed up to 2002. You'll also have your costs of acquiring and disposing of the property and may have your CGT personal exemption (and maybe a wife/partner's too) of €1,270. But yes, in broad terms your liability should be c. €10,000. The above deductions, indexation and exemptions might reduce that to (say) €8,000.
 
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