CGT on rental property sale

S

spouse

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Hello,
I purchase a property in 2008 for €250k.
It has been rented since 2015 with form 11 tax returns completed annually.
If we sell in 2018 for €250k it is my understanding that we are not liable for any CGT.

I am confused by Form 11 pages 29 to 31.
If we were to hold out and sell next year for say €255k it is my understanding that there is a personal exemption of €1270 and can also deduct solicitors fees for buying and selling say €4000 (not sure where this is entered on the form).

I am unsure what to fill in for question 805 (a) Disposal of principal private residence enter amount of consideration? For either the scenarios above.

Any advice appreciated, thanks in advance.
 
CGT = Capital Gains Tax, so no gain, no tax. A capital loss can be carried forward indefinitely to offset against future capital gains.

If you make a gain, you get relief ie part is not taken into account, for those years in which the property was your PPR (Principal Private Residence). If you sell it for 255 then your gain is 5k - assuming you lived in the property from 2008 to 2015 (7 years), then (7+1) / 10 or 80% of the 5k would not be taxable. So with the annual CGT allowance of 1,270 no tax would be due.

You will need to file a CGT return in any case
 
Was just going to post similar question hope you don't mind. I had an apartment for a few years before moving to another permanent house (which has since been sold and CGT relief claimed as it was my PPR). The apartment was rented for part of the time I wasn't living in it. Is the CGT calculated on the years it was not my PPR so I can apportion it accordingly - does it matter when it was rented? If the gain is say 50000 * 33% = €16500 less 1270 = 15,230 payable. Is that how it works?
 
I think you work it by months not years. The apportionment is based on the length of the periods which were PPR and not PPR. The value of the property when sold and when bought is used. The intermediary values do not matter at all.

The figures you need are

Number of months the property was owned = A
Number of months the property was a PPR = B

So you get relief for B+12 months or (B+12)/A of the eventual gain. The balance of the gain is taxed at 33% less the 1,270 annual allowance.
 
Thank you JPD. Just to clarify the €1,270 is taken off the tax amount payable or the amount before you calculate the tax?
 
Hello

Gain are calculated as follows:

Proceeds say €105,270
Less Cost of sale say (€5,000)

Less cost of acquisition & costs say (€75,000)

Gain €25,270
Less PPR Relief if applicable
Less losses if applicable
Less personal exemption (€1,270)

Taxable gain €24,000
Tax at 33% = €7,920
 
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