Availing of Capital Gains Tax Relief
If you purchased an investment property or second home between 7th December 2011 and 31 December 2014 you should be aware of a Capital Gains Tax (CGT) relief that you may be able to avail of.
Any gains made on property acquired between 7 December 2011 and 31 December 2014 are exempt from CGT provided that you owned the property for at least four and up to seven continuous years and that you sold the property on or after 1st January 2018.
You can get partial relief if you have owned the property for more than seven years. To calculate the partial relief, divide seven by the number of years you have owned the property. This will give you the portion of gain that is exempt.
For example, if you bought an investment for €100,000on the 1st January 2012 and sold it for €200,000 on the 1st January 2019 there would be a chargeable gain of €100,000. However, in this scenario you would be entitled to full CGT relief because you have held it for seven years before the sale closed. The relief however decreases the longer you hold it after seven years so if you decided to sell the property now and the sale closed on the 1st January2025 for €250,000 you would have held the property for 13 years you would then been titled to 7/13 relief. In this case the chargeable gain of €150,000 (€250k less €100k purchase price) would have relief €80,769 leaving a taxable gain of €69,231.
So, if you purchased a property other than yourprinciple private residence during this period it is important to remember thatyour CGT relief is reducing every year.
You can get more information at www.revenue.ieand please remember to get professional tax advice before you make any decision.
