CGT 7 year exemption on investment property extended by a year

[Brendan Burgess]

Property purchase incentive
The inventive relief from CGT (in respect of the first 7 years of ownership) for properties purchased between 7 December 2011 and 31 December 2013 introduced in Budget and Finance Act 2012 is being extended by one year to include properties bought to the end of 2014. Where property purchased in this period is held for seven years the gains accrued in that period will not attract CGT.

 

[Brendan Burgess]

21. Extension of CGT Relief for Property Budget and Finance Act 2012 introduced a CGT incentive for property purchased in the period up to 7 December 2013. This purchase period is now being extended to 31 December 2014. Properties purchased in this extended period and which are
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held for a minimum of 7 years will not attract CGT on any gains if disposed of at that point. Proportionate relief will apply where disposals are made after 7 years. Target: To encourage activity in the property sector.

 

[postman pat]

Hi Brendan.
Is this just for commercial property?

 

[Brendan Burgess]

No. It applies to any investment property - residential or commercial.

 

[postman pat]

ah ok thanks, seems a good incentive...

 

[Jimi64]

As to restrictions on this incentive:-

Do you have to dispose of the residential investment property by any date?

Is there a restriction on the total capital gain you can make? €1m or €5m.........?

 

[Gordon Gekko]

No, but the exemption then gets time-apportioned.

e.g. total period of ownership 20 years and gain of €1m; 7/20 of gain exempt, i.e. €350k.

No cap on the value.