Time definitely running out - a far safer bet of some return rather than leaving in cash -
more thoughts welcome please.
Budget to scrap Cap Gains Tax exemption
Thursday, 9th October 2014 03.46pm
Minister of Finance Michael Noonan has confirmed that he does not intend to extend the Capital Gains Tax (CGT) exemption any further.
"I use tax breaks to get a particular economic or social response in the short term but I will not have it bedded in as a permanent feature of the tax code," he said.
Following the property crash, the Government, in Budget 2012, introduced a relief to incentivize the public to once again buy property with the promise that if that property was held for more than 7 years then on sale the seller would not be subject to Capital Gains Tax (CGT) on any uplift in value.
The relief initially applied to any property bought between 7 December 2011 and the end of 2013. However this was extended, in Budget 2014, until 31 December 2014.
Aidan Byrne, Taxation Partner, Baker Tilly Ryan Glennon commented "As we know, the property market has been on a steady upturn in the last year, people are seeing the value of this relief more and in practice are utilizing the relief. Those who have not bought property since the 7 December 2011, but have the means to do so, should consider availing of this relief especially in conjunction with succession planning and potential dwelling house relief".
By way of example of how the relief applies: if the property was bought in January 2012 and sold in January 2022, the property would have been held for 10 years, so 7/10 of any gain will be relieved from CGT and 3/10 is taxable.