Residential Investment property - CGT Indexation ?

Buckshee

Registered User
Messages
72
Have read most of the Capital gains tax posts on here and have had a look at this http://www.revenue.ie/leaflets/cgt1.pdf from the Revenue sites but still i'm a tad confused ( I'm thick really !!)

Considering selling a residential investment property I bought in 2004. In short my question relates to if the original costs ( purchase price, solicitor, stamp duty ) can be indexed and if so what are the rates. From a brief perusal of whats on here it would appear that indexation only applies to assets disposed of prior to 2003 but maybe i'm missing something.

I will obviously be handing all the paperwork over to an accountant to do the maths officially for me when it goes through but just trying to do a rough count for my own information at the moment.

PS if anybody could recommend a suitable accountant in the North Dublin / Drogheda general area I'd be obliged
 
Indexation relief stopped in 2003, which means that no asset acquired after 2003 gets any indexation on costs.

Assets acquired before 2003 get indexation (but only to 2003 levels).
 
In your case rough calc ( since asset bought post 2003 ) would be :-

Selling price minus costs associated with sale (legal/auctioneer etc)
= net sale proceeds

Purchase price + costs associated with purchase (s/duty/legal etc) + any enhancement expenditure (not already claimed against income tax)
= total cost

Net sale proceeds minus total cost = chargeable gain
chargeable gain minus personal exemption (€1,270 or €2,540 if joint owned) = taxable gain
taxable gain x 20% = cgt due