Thanks. So there is no benefit in getting house revalued upwards now while it is a PPR?Question 1 No
Question 2
Back of envelope calc approx 16,500
Gain 100,000
No of years as investment 10 ( 1 year is discarded)
No of years owned 20
Gain 100,000 /20*10=50,000*33%=16,500
Deductions can be made for stamp duty auctioneer fees and solicitor fees.
Thank you. That is clear.No. There is no such thing as "revaluing it" . That does not come into the CGT calculations.
And here is something to consider.
If you sell it within a year of today, you will pay no CGT.
If you sell it in 10 years time for €150k , its current value, half the gain is subject to CGT even though all the gain arose while it was you PPR.
So, very simply,
Gain €50k
PPR relief: 50%
Gain subject to CGT: €25k
CGT @33% = €8,300
Even if the property falls in value over the next 10 years, you could still pay CGT.
Brendan
Looking at the positive side, if the property was to rise in value by 100k over the next ten years, you would only be liable to CGT on 75k of this.
Swings and roundabouts.
50k of it, no?
An increase of 100k over the next ten years would give a total increase of 150k, half of which would be exempt from CGT. Moneymakover has the calculation above.
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