2 properties-capital gains tax

C

CarrieB

Registered User
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If I already own a property on my own and will, in March 2007, own another with another person will I still have to pay capital gains tax if I sell the 1st property after March 2007 i.e. when I have my name down on 2 properties?
Is it possible to legally transfer the 1st property to someone else who doesnt own any other property and then sell next year and not pay capital gains tax?How much does it cost to legally transfer assets?
Thx
 
I think you have a 12 month 'grace' period so you should not be liable for CGT on the first house if you sell in within the year. Check with the Revenue though.

Sarah

www.rea.ie
 
As long as the first property is your PPR you have 12 months in which to sell before any capital gains tax liability arises.
 
i tought the property had to be your PPR for 12 months before you could sell it?and not before 12 months?
Is it definately though if you own 2 properties and you sell one you have to pay CGT on the profit?
Thx
 
and the CGT would only be payable on that part of the profit that accrued while the property you sold was no longer your PPR
 
So I have 12 months from owning the 2 nd house to sell the 1st place before I have to pay CGT.Thats great.

Thx
 
Do you know how they would work out this value?
I've been trying to sell my former PPR for a few months now and it'll be a year as not being my PPR in October. (I put it on the market in April as I had some health issues to deal with first, hence the delay.)
Do they go on the estate agent's valuation which is all I'm looking for or close to so I would doubt there would be any increase in this price when it does sell?
I just want rid at this stage as I'd prefer to pay off a portion of my new mortgage and stop paying the old one.
Thanks.
 
nt00deep said:
and the CGT would only be payable on that part of the profit that accrued while the property you sold was no longer your PPR
Click to expand...

Not true, the value of the property when it stopped being your ppr is not relevant. You will pay CGT on the whole profit, but proportionate to how long it was ppr or rented.

Eg Own house 10 years, ppr for 6, rent for 4, increase in value is 100,000
proportion subject to tax = (10 - 6 - 1) / 10 * 100,000 = 30,000
@ 20% = 6,000 tax due
 
Berni said:
Not true, the value of the property when it stopped being your ppr is not relevant. You will pay CGT on the whole profit, but proportionate to how long it was ppr or rented.

Eg Own house 10 years, ppr for 6, rent for 4, increase in value is 100,000
proportion subject to tax = (10 - 6 - 1) / 10 * 100,000 = 30,000
@ 20% = 6,000 tax due
Click to expand...

This would become an issue in a "soft landing" scenario where property stops increasing in value by significant margins, as all the profit you've accumulated tax free in your property would start becoming taxable the longer you hold onto it.
 
Berni said:
Not true, the value of the property when it stopped being your ppr is not relevant.
Click to expand...

I never mentioned anything about value of property when it stopped being one's PPR. I referred to profit that accrued thereafter but should have added that it is calculated not based on reference to interim valuation but based on percentage of overall profit.

Thanks for clarifying that.
 
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