CGT on rental property sale

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Colin4444

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Trying to calculate CGT on sale

  • Bought in 2004 for €199,000.
  • Selling in 2026 for €280,000.
  • Total ownership is 22 years.
  • Lived in property for 12 years.
  • Rented property out for 10 years.
What expenses can I write off?
BER cert for sale in 2026 = 220
Solicitors fees (both when bought in 2004 and sell in 2026)?
Stamp duty when bought in 2004?
Surveyor when bought in 2004?
Improvement expenses, like improving the attic, got it floored and stira installed (its not converted only for storage)?

Was my PPR for 12 years + the last 12 months = 13 years

Is their anything I am missing?
 
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Any so-called "capital" costs or enhancement expenditure that you didn't write-off against your rental income. So if you put in a new (and improved) bathroom, new kitchen, new high efficiency boiler, swapped out the original windows for better ones, put in an alarm.

But just be careful about double dip risk in terms of what you claimed against rental income.
 
elcato said:
Does this mean it was let for 9 years so rather than 10 ? As 22 years of 10 (letting) and 13 = 23 years or are these just used to calculate the % of CGT due ?
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Yes, only relevant for CGT.

If you look at the Revenue's guidance on the legislation in s604(3) it allows you a deemed occupation period for the last 12 months of ownership for the purposes of the CGT calculation and explains the logic, saying "The last 12 months of ownership is, in any event, to be regarded as a period of occupation. This allows for the case where the owner-occupier puts his/her house for sale and moves without being able to find a buyer immediately.".

More pertinently, Revenue's guidance on s604(4) also specifically notes the inclusion of the last 12 months as a period of occupation where partial relief is available.

"Where the dwelling house was not occupied by the individual as his/her only or main residence throughout the period of ownership, a proportion of the gain on the disposal is exempt. This proportion is the same proportion as the length of the period of owner-occupation (inclusive, in any event, of the last 12 months of ownership) bears to the length of the period of ownership. The balance of the gain is chargeable in the normal manner"

No 39 of 1997, Section 604, Revenue Note for Guidance

No 39 of 1997, Section 604, Revenue Note for Guidance
www.charteredaccountants.ie
 
So just to finish off in this case the % of CGT liability is 10/23 or 43.5% for the owner and the non letting is 13/23 or 56.5%.
 
Don’t forget to deduct the annual CGT allowance of €1,270 (assuming you haven’t used it for any other disposals).
 
Villaines said:
Any so-called "capital" costs or enhancement expenditure that you didn't write-off against your rental income. So if you put in a new (and improved) bathroom, new kitchen, new high efficiency boiler, swapped out the original windows for better ones, put in an alarm.

But just be careful about double dip risk in terms of what you claimed against rental income.
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Yeah, unfortunately everything is already written off against rental tax :(
 
Daphne said:
Don’t forget to deduct the annual CGT allowance of €1,270 (assuming you haven’t used it for any other disposals).
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Now this is interesting, tell me more? is that allowance each year, and what other disposals could it have been used for? Is this like any expenses on the property? These would have already been used when calculating year rental tax..
 
it's € 1,270 for each year that can be offset against any gains in that year only

It is not cumulative - if you don't use it in the year, then it's gone

You have to use up any losses brought-forward before you can use the allowance
 
Colin4444 said:
Now this is interesting, tell me more?
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What is exempt from CGT?

This page is an explanation of what is exempted from CGT
www.revenue.ie www.revenue.ie

Personal Exemption​

Each tax year, the first €1,270 of your gain or gains (after deducting losses) are exempt from CGT. You are entitled to this exemption whether you are resident or non-resident. You cannot transfer this exemption to your spouse or civil partner.

This exemption is for individuals only, so it cannot be claimed by a company or trust.
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See also their examples and Further Guidance links/documents.
 
Thanks @ClubMan
This is an example provided, below
So I can only subtract 1,270 for the year I am selling the property, not for each year it was rented out :)

1786531403691.webp
 
Colin4444 said:
So I can only subtract 1,270 for the year I am selling the property, not for each year it was rented out
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Yes.
jpd said:
it's € 1,270 for each year that can be offset against any gains in that year only

It is not cumulative - if you don't use it in the year, then it's gone
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If the property is in multiple names then each owner can use their individual annual CGT exemption.
 
jpd said:
it's € 1,270 for each year that can be offset against any gains in that year only

It is not cumulative - if you don't use it in the year, then it's gone

You have to use up any losses brought-forward before you can use the allowance
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Could I use that each year Im filling in my Form 11, or is that just for CGT?

Im chancin here...
 

CGT on rental property sale

Trying to calculate CGT on sale Bought in 2004 for €199,000. Selling in 2026 for €280,000. Total ownership is 22 years. Lived in property for 12 years. Rented property out for 10 years. What expenses can I write off? BER cert for sale in 2026 = 220 Solicitors fees (both when bought in 2004...
www.askaboutmoney.com

Can you tell me how that worked and are you happy with the outcome?
 
ClubMan said:
If you have a capital gain in any year you can use some or all of your annual personal CGT exemption of €1,270.
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The price of the house would have gone up most years since I started to rent in 2016?
But how would you calculate that?

Im only getting 1270 for the last year, but I would have had the capital gains for most years since 2016!
 
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