CGT on rental house sale

[Blueporter]

My tenants have just given me notice after 14 year. I am unsure of renting out again or selling up.
House bought for €265,950 in 2003. Potential sale price is €400,000
It was my primary residence for 7 years. How do I calculate the CGT on this?
I am getting conflicting answers.

 

[Protocol]

Have you read the Revenue information?

Capital Gains Tax (CGT) on the sale, gift or exchange of an asset

This page explains what Capital Gains Tax (CGT) is and the CGT rate that applies

www.revenue.ie

The section on CGT reliefs may apply in this case:

Capital Gains Tax (CGT) reliefs

This page explains about Capital Gains Tax (CGT) reliefs and exemptions

www.revenue.ie

 

[Blueporter]

Great thank you. I'll have a look now.

 

[ClubMan]

In very simple terms, based on the brief information that you've posted, you should be entitled to CGT relief in relation to the 7 years that it was your PPR and also the final year of ownership - i.e 8 years in total. So it's likely that (21 - 8) / 21 = 62% of the total gain is actually liable for CGT. As mentioned above certain expenses may be allowable when calculating the gain. And since the property was acquired in 2003 the original base cost may be indexable for inflation. The Revenue summary information linked above and the further information guides give more information. But, if in doubt, get independent professional advice.

 

[T McGibney]

And since the property was acquired in 2003 the original base cost may be indexable for inflation.

Untrue, sadly.

 

[ClubMan]

Untrue, sadly.

Sorry, I'm out by a year. If it had been acquired before 2003 then indexation relief might apply. So not here.

Indexation Relief

This page is an explanation of indexation relief for Capital Gains Tax (CGT)

www.revenue.ie

 

[cally1990]

 

[Blueporter]

Thank you all. Makes sense now.

 

[Cameo]

Can reduce capital gains by stamp duty solicitors fees and allow for enhancements too, and y9u have the annual allowance capital gains tax too