Capital gains tax - payment ?

Finlandia

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I have a property with my ex which is rented out and we are considering selling my question is do I have to pay CGT as I have been renting since we both moved out and I want to use the money of the sale as a deposit for a new house. I heard that if you are using it to buy a new home you are exempt from the CGT.

Hope I am right ?
 
No.

How much did you pay for it? How much are you selling it for?

The period that you lived in it plus 12 months is exempt under PPR relief.
 
Hi joe_90

Bought it for punt (€117k) and got a top up on the mortgage of €40k so that works out at €157k there is €78k left on mortgage hoping to sell for €180k so that would be a profit of €102k.

Bought the house in 1998 and lived in it until 2011 it has been rented out for the past 5 years
 
The mortgage is ignored.

You bought it for €117k. You would have had some allowable acquisition costs (e.g. legals, stamp duty perhaps, etc). Let's say they augment the total to €125k.

Then there is some indexation of the €125k, but only until 2003. There's a special table setting out the relevant numbers (just Google "capital gains tax multipliers indexation").

Then any big enhancement work can also be included (and indexed if relevant). But let's assume there's none.

Then you sell it for €180k and let's say you incur allowable selling costs of €5k.

So overall, a gain of circa €50k (ignoring indexation).

It was your home for 13 years out of 18 years. An extra year of deemed residence is then added. So 4/18 x €50,000 ends up being subject to CGT. That's €11,000, less your €2,540 allowance, so €8,500 taxed at 33%, meaning €2,800 of tax payable (assuming neither of you have capital losses).

Back of the envelope stuff, so caveat emptor, but you have the bare bones there...
 
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Wow thanks so much guys that has really helped and put my mind at ease when you said I had to pay CGT I panicked until I read the whole details i thought I would be paying quiet a lot and not in and around 3k. Maybe things are finally looking up for me
 
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