Capital Gains Tax

[lala]

Just a query as to how much CGT I am liable for. I purchased an second property with my partner which she lived in as her PPR for approx. 9 months and then she moved into my PPR. We then rented out the second property for what will be 12 months when we sell. The house was purchased for 195000 and is now worth 320000.We also paid the 5800 stamp duty required at the time. What capital gains tax will be due on this property as it was both a PPR and investment property??

 

[Nige]

If the property is sold within 12 months of your partner moving out, the entire gain will be exempt from CGT.

The exempt amount is calculated by dividing the number of months it was her PPR + 12, by the number of months of ownership.

So, if she owned it for 24 months by the time it sells, the exempt part of the gain will be 9+12/24, which is 87.5% which leaves 12.5% of the €119,200 gain taxable. So, only €14,900 is subject to CGT at 20% and the tax payable would be €2,980.