CGT Multiplier on revenue website?

J

johnl68

Registered User
Messages
51
Hi,

Does anybody know why the capital gains tax multiplier on the revenue website only goes as far as 31st of dec 04', or where would I get the updated multiplier to calculate a property sold this year which was bought in 1999?

Thanks
Johnl68
 
indexation relief is what you are referring to, and it was abolished after 2004 as the CGT rate was reduced to 20%. so if bought then the only indexation you get is up to the end of 2004, so none for 2005.

Per the website
Subject to certain restrictions, this expenditure may be adjusted for inflation. This adjustment is not made to expenditure incurred on or after 1 January 2003 or to the period from 1 January 2003 to the date of disposal, where expenditure was incurred before 1 January 2003. Multipliers are available under Leaflets and Guides.
 
Multipler was stopped from 2002. This was a trade off with reducing the rate from 40% to 20% a few years previously
 
See [broken link removed] although I'm not sure if it was actually 2002 as below or 2003!
Indexation:

 For future disposals, indexation relief will apply for the period of ownership of an asset up to 31 December 2002 only.
Click to expand...
 
My situation is similar to Maximus12 - with the above posts being very helpful. One element different for me is that I did fall into SD Clawback category when I let my residence. Settlement (with assistance of solicitor) with the revenue was completed in Summer of 2006. This was 3.5 years after the date of 1st letting. No penalties were applied as they felt it was an error through ignorance on my part. I did pay tax on rental income within the required timelines which was probably a help.

My questions are.
(a) Can I apply the indexation relief multiplier to the SD Clawback amount paid, even if it was paid after the relief was abolished?
(b) Can my solicitor fees for the SD Clawback work be used as a deduction?
 
(a) Can I apply the indexation relief multiplier to the SD Clawback amount paid, even if it was paid after the relief was abolished?
Click to expand...
No, the SD clawback is the SD you would have paid if you bought the property as an investment when originally bought.

(b) Can my solicitor fees for the SD Clawback work be used as a deduction?
Click to expand...
No, not now. It can be deducted as an expense afaia which includes SD when you eventually sell the property.

Just to add if the property was bought before the abolition of the multiplier, you add the expenses (which afaia includes SD and solicitors costs) to the cost of the property and apply the multiplier.
 
You must log in or register to reply here.
Back
Top