How will Capital Gains Affect Me

G

Genesis Man

Guest
I purchaed a house in Sandyford for 175,000 in 1998 and is now worth 625,000 (valuation date June 06). I am planning on buying a house with my girlfirend and would like to retain my Sandyford property for
investiment purposes.

If I was to hold it for say 5 years and sold it then for say 725,000, how will Capital Gains affect me.

Will I have to pay the 20% on:

725k - 175k = 550 * 20% = 110k
or 725k - 625k = 100 * 20% = 20k
or am I way off the mark

All replies and advice welcome
 
The portion of the gain i.e. 8 years of occupation out of total ownership period of 13 yrs is exempt from tax due to PPR releif

therefore the cacl will be like this

725K less 175K equals 550

taxable 550k*5/13 equals 216k at 20% equals 42k
 
Nearly.

725K less 175K equals 550

taxable 550k*(5 - 1) /13 equals 169k at 20% equals 34k. The first 12 months as non PPR is waived.

There may also be some indexation and allowable expenses that can be offset against the 169K value.
 
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