Capital Gains Tax

L

Lughaidh

Guest
Could anyone calculate my CGT liability arising out of the sale of a property which was not my ppr. I bought the property for £ equivalent €64,000 in 1996, legal fees cost me about €2,000 (no stamp duty) I am selling now for €155,000 Legal fees about €2,000 and Auctioneers fees about €4,000. Can I put anything else against my CGT bill? My husband has some shares that he will sell to realise a loss. Might seem like a silly question but if we show a loss of we'll say €5,000 is that set against the profit then calculated at 25% or is the €5,000 set against the tax itself (think the former but not too sure). Appreciate some guidance.
 
Cost 1996 64000
Legal 2000
Total 66000
Index 1.251 (1)
Indexed Cost 82566

Sale in 2010 155000
Costs 6000
Net proceeds 149000
Less indexed cost 82566
Chargeable gain 66434
Pers Exemption 1270 (2)
Taxable gain 65164
Tax at 25% 16291

(1) Indexation is allowed on the cost. If the purchase was between 01/01/96 and 05/04/96 the index would be 1.277 and from 06/04/96 to 31/12/96 would be 1.251. I have assumed the latter.

(2) You refer to "my liability" and "I bought". I assume the property is in your sole name. If it is in joint names then 2 x 1270 exemptions can be claimed.

You would also be entitled to claim relief, on to the cost, and indexed depending on the year, for any enhancement expenditure. That would be anything added to the property not already allowed against income tax, e.g. if you added a sunroom or garage or other major improvements.

Your husbands losses would be against the chargeable gain, not against the tax amount, so effectively a 5000 loss is worth 1250 off the CGT.

(pls excuse the way the lines came out, I did space them to try get all figures in a straight column but doesn't seem to do it)
 
you can wrap code tags around your post, and it keeps the layout intact...

like so..

Code: 
1 1 
1  2
1   3
1    4
1     5

that was entered as
1 1
1 2
1 3
1 4
1 5
with different numbers of spaces between the numbers... (not visible in normal layout, but can be seen in the code layout... ideally the font used for 'code' should be fixed width, that should be automatic

this is used for computer programming code, where layout is very important.
 
Would appreciate clarification re claiming relief for expenditure re refurbishment (in my case, retiling and installing new shower in place of bath, before placing the apartment on the market). I've just looked at the CGT1 form - there's no mention to apply for that?
I assumed that the expenditure allowable for CGT purposes are: solicitors and estate agent fees?

allencat
 
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