CGT calculation - verification

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Listen67

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Hi All.


I am attempting to calculate the CGT on the following and would be grateful for verification please.


Apartment purchased in Dublin in May 2001 for €204,427 (161,000 punts €1 = IR £0.787564)

I lived in it until Feb 2003 when I move to Cork.

My brother lived in apartment until Feb 2005.

Since then it has been rented out.

We estimate that the current sale price today at €290,000

No significant development of the apartment has taken place.


I have made an attempt to calculate but not sure it is correct?
(Can the years that we lived in property be taken into account?)


Calculation of gain 2019:

Disposal Consideration €290,000

Less Incidental Cost of Disposal - €7,000

Net Disposal Consideration €283,000

Deduct:

Value on 6 April 2001, adjusted for inflation;

i.e. 204,427 x 1.087 = - €222,212


Capital Gain €60,788

Less Personal Exemption -€1,270

Chargeable Gain €59,518

Tax due 2019 @ 33% €19,640

Thanks in advance,
Sean
 
Yes, circa 1/6 of the gain should be relieved.

(2 years occupation + 1 deemed) / 18

I know it’s not quite 2 years.
 
Note also that if you were obliged to move to Cork for work purposes you can also claim up to 4 years as 'deemed occupancy' of the property which increases the relieved proportion.

See page 8 of this Revenue document
 
AFAIA you can also include the costs of purchase (solicitors costs ) adj for inflation
 
Thanks all for your replies. It seems there are a few additional savings that I can employ. :)
 
Thanks for posting this question. I find myself in a very similar situation. Can you help me understand the adjustment for inflation please?
I see 204k (in 2001) going to 222k (in 2019) that's 8% over 18 years. Do you know if there is there an official government source for this rate?
 
Did you pay capital gains tax in 2001 ? Or are you including disposal and buying in the 7k ?
 
I have a similar scenario with the exception that my property was never rented out.

I retired in 2008 and moved West and the property was on the market for over a year but I was unable to get a fair offer that I was willing to accept so I kept the property and used it randomly myself.

It was my principle private residence for 20 year and a second home for 10.

Besides a portion of PPR relief, Indexation and costs are there any other way to reduce my CGT liability?

or can I register this property as my PPR for full relief as it was never rented out?
 
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