Confused about CGT

pAnTs

Registered User
Messages
216
Hi I am a little confused about CGT. I have an apartment that we're thinking of selling. We bought it two years ago. On the Citizens website I read the following

"The relief from Capital Gains Tax (CGT) (for the first 7 years of ownership) for properties purchased between 7 December 2011 and 31 December 2013 was extended by one year to include properties bought to the end of 2014. Where property purchased in this period is held for seven years the gains accrued in that period will not attract CGT."

but on the journal.ie I just read this (http://www.thejournal.ie/budget-2015-property-market-explainer-1730094-Oct2014/)

"This measure worked as an incentive for people to purchase property as gains made were not taxed for the first seven years of ownership."


I'm confused...if we sell this property now (we're planning to in the next few months) do we have to pay CGT or not???

Do you have to hold onto the property for 7 years and then you dont have to pay CGT? or does it mean if you sell it within the 7 years you dont have to pay CGT?
 
You need to go to the revenue's website.

Did you purchase the property after 7 Dec 2011 ? If yes, you need to hold it for 7 years and then sell it and there will be no CGT, otherwise you don't come under this exemption so normal CGT rules apply.

I see why the journal.ie article is confusing: this bit

This measure worked as an incentive for people to purchase property as gains made were not taxed for the first seven years of ownership.

You have to hold the property for a minimum of 7 years and buy in the correct time period in order to avail of the relief.

Just curious, is the apartment in Dublin and what increase has there been on it?
 
I wonder how many people think that you can buy and sell within the seven years free of any CGT, ( assuming a gain ) I for one thought that, I wonder what will happy to property prices after the seven year holding period ends, will there be a glut of sellers, I think there might be....
 
Of course there will be a load of sales, particular if one bought solely for this relief and especially if property has gone up. CGT is so high now it's a very valuable relief if property rises.

In addition, after the 7 years, holding on to it can be detrimental if I understand the calculation thereafter correctly.
 
Hi thanks for the reply. Ye there has been a good increase on it, worth buying for. It was bought during the time period specified for the relief. I think we're going to sell it in the next year despite the CGT relief....thanks for the info
 
Back
Top