CGT House sale

M

mim45

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Purchased house in 2002 for €168,240 and PPR until 2008. Rented out from then till now. Looking for approx amount of CGT payable if sell for 215k. Thanks in advance
 
How much stamp duty did you pay in 2002?
How much did you pay your solicitor in 2002?
How much did you pay your engineer in 2002?
Any other costs incurred in purchasing the house in 2002?

How much will your estate agent charge you to sell your house in 2018?
How much will your solicitor charge you to sell your house in 2018?
Any other charges to be incurred in selling your house in 2018?

Lets say you paid €168,240 and another €1,682 in stamp duty and another €2,000 in solicitor fees and another €500 to the engineer in 2002.
And lets say you are paying the estate agent 2% (i.e. €4,300) to sell your house, plus VAT @ 23% (i.e. €989) and your solicitor is charging you €2,000 to sell your house.

Your total costs in buying and selling the house are €168,240 + €1,682 + €2,000 + €500 + €4,300 + €989 + €2,000 = €179,711.

You are selling the house for €215,000 so your "profit/gain" is €35,289 (i.e. €215,000 - €179,711).

You bought the house in 2002 and sold in 2018, so that's 17 years of ownership. 7 years the house was your PPR and Revenue allow you 1 extra year as your PPR for CGT purposes/calculations.

So 8 of the 17 years the house was your PPR in theory, so 8/17's of the profit/gain is tax free (i.e. €16,606). This leaves €18,683 (i.e. €35,289 - €16,606) as your taxable gain.

You are allowed gain €1,270 each year tax free, so assuming you haven't used up this allowance already, you must pay or are liable for CGT tax @ 33% on a total of €17,413 (i.e. €18,683 - €1,270).

This means you have a CGT bill to pay Revenue of €5,746.29 (i.e. €17,413 * 0.33).
 
Last edited:
cliqueentour said:
You bought the house in 2002 and sold in 2018, so that's 17 years of ownership. 7 years the house was your PPR and Revenue allow you 1 extra year as your PPR for CGT purposes/calculations.

So 8 of the 18 years the house was your PPR in theory, so 8/18's of the profit/gain is tax free (i.e. €15,684).
Click to expand...

7/16ths as far as I can see?
 
cliqueentour said:
No it's 8/17th. 2002 - 2003 would be two calendar years, so 2002 - 2018 is 17 calendar years.
Click to expand...
16 years ago since this day in 2002. Far safer to do the math by months or days. OP should consider getting professional advice if confused.
 
Thank you all for the very helpful replies. As the house was left in an awful state we will have to put a lot in to get it fit for sale, kitchen, floors, shower, internal doors etc so just wondering if any of this can be regarded as charges incurred in selling. We only collected rent for Jan/feb/March so very little to write off against repairs.
 
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