CGT Liability ?

R

Rodial

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Plan to dispose of investment property and trying to work out approximate CGT liability

Property acquired in 1987 and I know that I can use the inflation multiplier.

My question is the property was acquired for IR£6000 in 1987 (family) but the property was worth more than that - maybe IR£50,000. On the revenue website it says calculate on market value for year acquired. Which figure do I use for CGT. ?
 
Thanks reply and I'm still not sure as I did ring revenue and they said purchase price - though person I was talking to did seem unsure. Therefore I'm just looking for a definite answer from someone who understands this tax ?
 
Did you pay stamp duty on the price? Or on the market value?

It should have been on market value.

mf
 
mf1 said:
Did you pay stamp duty on the price? Or on the market value?

It should have been on market value.

mf
Click to expand...

Don't remember - long time ago ! Was done through reputable solicitor so hopefully done right and deeds are with banks. What are implications either way ?
 
Rodial said:
Thanks reply and I'm still not sure as I did ring revenue and they said purchase price - though person I was talking to did seem unsure. Therefore I'm just looking for a definite answer from someone who understands this tax ?
Click to expand...

Don't pay any heed to Revenue "advice". They're in the tax collection business, not the advice business and they will hang you out to dry if you get it wrong, even if you follow their "advice" to the letter.

You won't get a definite answer here either. This is just a website where people help each other, it's not intended as a substitute for proper professional advice.
 
You bought the property in 1987 for £ 6,000 and the property was worth £ 50,000. So you were effectively given a gift of £ 44,000.

You will have to check the papers from 1987 to see what value was used for the property transaction
 
You would have been liable to CAT on the difference between market value and purchase value when you acquired the asset so it is market value you use now when calculating CGT. CAT thresholds may not have been reached so no CAT may have been payable.
 
I was thinking about stamp duty and possible penalties if OP used purchase price rather than market value.

They should definitely get proper advice!

mf
 
thanks for replies - is an accountant or solicitor best for advice in this situation ?
 
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