CGT calculation inc PPR relief - correct?

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marshmallow

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Hi all, am selling my investment property (formerly my PPR) & would be grateful if someone who knows about these things could check my calculations to see if correct.


Bought in 1999 for £135k Irish punts

My calc is as follows:

Sale agreed price €255,000
Purchase price in 1999 £135k €207,797 (euro price incl indexation)

Profit €47,303
- PPR relief 7yrs 33,112

Net Profit €14,100
- Married CGT relief 2,540

Taxable profit €11,560
@25% € 2,890

Is this figure correct or have I left out anything?
Many thanks in advance
 
Hi Marshmallow,
That looks correct assuming you moved out in 2005 (6 years ppr plus 12 months deemed occupancy).
Note that there is no such thing as married CGT relief, however if property was owned in 2 names then each party gets a 1270 relief. As far as I know a family home would have to be in both spouses names to get the double relief.
Also, I've heard that Revenue prefer calculations in months or even days, I'm not sure they will accept years.
Sybil
 
Mrs Vimes said:
Hi Marshmallow,
That looks correct assuming you moved out in 2005 (6 years ppr plus 12 months deemed occupancy).
Note that there is no such thing as married CGT relief, however if property was owned in 2 names then each party gets a 1270 relief. As far as I know a family home would have to be in both spouses names to get the double relief.
Also, I've heard that Revenue prefer calculations in months or even days, I'm not sure they will accept years.
Sybil
Click to expand...

Thanks so much, actually we moved out in 2006 so can I include 8 yrs relief? And yes, the 1270 for my wife and I is what I meant, thank you.
 
It was bought before April 6 1999? you seem to have used the 98/99 multiplier, although I make it 207,754 (perhaps conversion differences .787564)
Also, don't forget to include solicitor's fees and stamp duty when you bought (add them to purchase price before indexing), any extensions, improvements, etc still present, and auctioneer's and solicitor's fees when selling.
Sybil
 
Make sure you can stand over/prove everything, Revenue are looking for breakdown of returns for huge numbers of CGT returns (I hear).
They are VERY UNLIKELY to accept years, you'd best break it down into months of ownership.
Sybil
 
Thanks again, fantastic help. Yes bought in Feb 99 and good to hear I can include my buying fees from back then. Do I then subtract today's selling fees from the profit amount as well as CGT allowance?
 
Hi Marshmallow, your calculation should be (figures made up):
Sale Price: 255,000
Less:
Auctioneers fee: 3,500
Solicitors fee: 1,500
Net Sale Figure: 250,000
Less:
Purchase Price £135,000
Solicitors fee: £1,000
Purch cost: £136,000/.787564 = Eur172,684 * 1.212 = 209,293
Gain: 40,707
PPR Relief:
Period of ownership = Feb 99 to Aug 2010 = 138 months
Period of occupation = Feb 99 to Dec 2006 = 94 months + 12 = 106 months
PPR Relief = 40,707 *(106/138) = 31,267

Net profit = 9,440
CGT relief X 2 = 2,540
Chargeable gain = 6,900 @ 25% = 1,725


You must insert the correct figures for solicitors and auctioneers fees and stamp duty if paid. Also I have assumed you bought/rented your next home in December 2006, change the figures to reflect the actual month you bought your next home (not the month you started renting the house out, you cannot have 2 pprs).

Sybil
 
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