Capital Gains Tax question on disposal of apartment...?

Dinarius

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About 15 years ago, we bought an apartment which was then our (first) principle private residence.

Ten years ago, we bought the house we now live in, but we retained the apartment and have let it ever since.

We are now considering selling the apartment.

I presume it would be liable to the 33% CGT rate that has been in force since 2012.

What I'd like to know is this; would the CGT be calculated on the entire proceeds of the sale, or would the fact that it was once our PPR have some bearing on this?

Also, would costs incurred during the 10 years we have been letting the property be off-settable against the CGT calculation?

Many thanks.

D.
 
Yes the fact it was your PPR will be taken into account.

No you cannot offset letting expenses. You have already used them for your rental income tax returns.

But did you do any 'capital' expenditure. An extension or anything that is not allowed under rental but that 'improved' the property, that you can offset. Also the solicitors fees for purchase and sale, and auctioneers fees.

And yes the gain will be taxed on the current rate which I believe is 33% as stated.
 
Thanks for the reply.

The only capital expenditure would have been wooden flooring throughout, fitted shelving, new bathroom - not sure if this qualifies. There was no structural work done.

It would be interesting to see how the 5 years, or so, when it was our PPR, would be taken into account for CGT purposes.

Thanks again.

D.
 
I'd have thought yes to the new bathroom being capital. But the accountants are going to tell me I'm wrong. Firstly did you claim any of that against rental income. The bathroom/extension/conservatory and especially new windows are an accountants dream or nightmare. The stuff of legends.

The shelving is clearly not allowable. Wouldn't have a clue about wooden flooring but I took up lino and retiled the kitchen and hall, very expensive and that went against my rental tax as per my accountants solid advice.

Do you have an accountant who does your income tax?
 
I'd have thought yes to the new bathroom being capital. But the accountants are going to tell me I'm wrong. Firstly did you claim any of that against rental income. The bathroom/extension/conservatory and especially new windows are an accountants dream or nightmare. The stuff of legends.

The shelving is clearly not allowable. Wouldn't have a clue about wooden flooring but I took up lino and retiled the kitchen and hall, very expensive and that went against my rental tax as per my accountants solid advice.

Do you have an accountant who does your income tax?

Yes, I have an accountant. But, I like to get second (and third!) opinions.

I can't recall if we offset anything against rental income. Anyway, in the context of selling the apartment and the resulting CGT bill, it would all be small beer.

Thanks for the reply.

D.
 
. Anyway, in the context of selling the apartment and the resulting CGT bill, it would all be small beer.

.

True but all these little things can add up, and 330 Euro in your pocket out of a previous 1K spend is better than in revenue's deep pockets.

Suggestion (for the second time) put all the figures on the AAM forum in a nice orderly fashion and Burgess might do one of his nice tables telling you what's what and then you'll see the picture in a different light, on whether to hold or sell.
 
I have a similar scenario to the above. The house was primary residence until 2006 then rented until the present. The house is for sale now but is worth less than it was in 2006 because of the crash. Do we still need to pay cgt on the total gain since we first bought the house in 1994 or as it was our primary residence until 2006 and has since lost value do we not need to pay as we've made a loss.

Obviously will be getting our accountant to do it all but would love an initial idea before selling.
 
Yes...the value in 2006 is irrelevant.

In broad terms, and ignoring things like indexation, enhancement, the 12 month grace period, and allowable costs, if you buy it in 1996 for €100,000, live in it until 2006 and sell it in 2016 for €200k, you pay CGT on €50,000 (half the gain).
 
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