CGT on rental property sale

Colin4444 said:
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!
Click to expand...
I don't really understand your post and questions (?).

You'll know your gain by subtracting the original acquisition cost plus any expenses allowable for CGT purposes from the ultimate selling price.

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
From this you can subtract your annual personal CGT exemption allowance of €1,270 (assuming it hasn't already been used this year on other capital gains) and then your CGT liability is 33% of the resulting figure.

If you're still confused about how to calculate your CGT liability then you should consider getting professional advice.
 
elcato said:
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%.
Click to expand...
No, denominator is 22, assuming it's sold immediately, the final year is not added on to the numerator and denominator as that would be a double count - the denominator is simply the total period of ownership.

Millie* said:
9/22 taxable
Click to expand...
Yes, before deduction of the annual allowance, 13/22 of the gain is exempted, or put the other way, as you say, 9/22 is the taxable portion of the gain.
 
ClubMan said:
You'll know your gain by subtracting the original acquisition cost plus any expenses allowable for CGT purposes from the ultimate selling price.
Click to expand...
Its not as if the house price jumped by 81,000 in just 2026 :)
ClubMan said:
From this you can subtract your annual personal CGT exemption allowance of €1,270 (assuming it hasn't already been used this year on other capital gains) and then your CGT liability is 33% of the resulting figure.

If you're still confused about how to calculate your CGT liability then you should consider getting professional advice.
Click to expand...
OK, I was thinking as I had capital gains each yr on the house, as it would have increased in value, therefore I would be entitled to 1270 each year?

A bit of wishful thinking on my part, as you only pay CGT in the year you sell, so any previous yrs where I had gains on the house dont count... which is a bummer...

No need for professional advise :) how much wud a professional cost in Ireland these days..
 
How did you find the process of a tenant sale? How did they do the valuation? (is this actually 'to them' or to the LA?)
 
ClubMan said:
It can be reassessment, interest and/or penalties even for an honest mistake.
Click to expand...
elcato said:
You would be at the mercy of the person in revenue who is dealing with the case and how honest they perceive it.
See. I corrected your honest mistake.
Click to expand...
I would question the extent of Revenue's wrath...

I knew a band going since the late 90's, they sold records, played gigs (in Ireland and mainly Europe), sold merchandise and never paid a penny in tax until around 2010... Revenue caught up with them... They werent a massive band, but would have had 50k profit each year split amongst 4 members (They didnt give up the day job)!

They came to a deal with Revenue and had to pay x amount, which was way less than the tax they would have paid if they had been paying all along..

Are their any records of what happened to someone who made a mistake paying tax, i.e. CGT, Form 11 etc?
 
Quick question on paying CGT, I will be returning the Form 11 for rental income in 2025 in October. I am also in the process of selling this rental property to the tenants, it may close in October of could be some delays and not close til November.

Do you use the Form 11 for CGT as well?

If so, what should I do, can I file the rental tax first and then the CGT separate? Or should I wait and hopefully sale goes through before rental tax is due so I can do both?
 
CGT isn't due until you have a binding sale contract, so you won't put anything for CGT in your Form 11 for 2025. You had no sale in 2025.

If the sale goes ahead, you will have to include it in your 2026 Form 11 which you will be filing in October 2027

CGT isn't dependent on when the sale closes but when you enter into a binding contract for sale ie. no conditions.

Filing a separate CGT return and paying the tax are detailed here from Revenue - this is separate from the Form 11 requirements.
 
Greenbook said:
CGT isn't due until you have a binding sale contract, so you won't put anything for CGT in your Form 11 for 2025. You had no sale in 2025.

CGT isn't dependent on when the sale closes but when you enter into a binding contract for sale ie. no conditions.
Click to expand...
Two things

- a binding sale contract is not a sale and does not trigger CGT
- when the 'transfer' happens, as in money changes hands and ownership goes from vendor to purchaser is when there is an actual sale.

Yes there was no sale in 2025, and still none in 2026. And one has to be mindful of deadlines. Here

When and how do you pay and file CGT?

This page outlines the steps to follow in order to pay and file Capital Gains Tax
www.revenue.ie www.revenue.ie

This is important in this case because there is no sale and next month is October.
 
Colin4444 said:
Quick question on paying CGT, I will be returning the Form 11 for rental income in 2025 in October. I am also in the process of selling this rental property to the tenants, it may close in October of could be some delays and not close til November.

Do you use the Form 11 for CGT as well?

If so, what should I do, can I file the rental tax first and then the CGT separate? Or should I wait and hopefully sale goes through before rental tax is due so I can do both?
Click to expand...
With respect Colin, you are floundering. CGT is separate to Rental Income tax. Can you ask an accountant how much they would charge you to do the CGT, it's a simple enough calculation. You do NOT want to get this wrong. Presumably you have a liability.

On this link is instructions on where to do the CGT return.

When and how do you pay and file CGT?

This page outlines the steps to follow in order to pay and file Capital Gains Tax
www.revenue.ie www.revenue.ie
 
Bronte said:
- a binding sale contract is not a sale and does not trigger CGT
Click to expand...
Believe me @Bronte it is. Have been though it with my tax consultant with my sales. The trigger point for CGT is when you sign the binding contract not when the sale closes.
Bronte said:
With respect Colin, you are floundering. CGT is separate to Rental Income tax. Can you ask an accountant how much they would charge you to do the CGT, it's a simple enough calculation. You do NOT want to get this wrong. Presumably you have a liability.
Click to expand...
Details of CGT disposals, the gain, the amount of tax involved must also be included in the relevant Form 11.

My tax consultant is going through all this with me at the moment.
 
My solicitor confirmed this also.

I also asked Chatgpt which said
For Capital Gains Tax (CGT) purposes, a sale or disposal occurs on the date the contract is made, rather than the later date when the sale closes or completes (the settlement/completion date)
 
Actually I think Greenbook is correct. I remember there was something odd about it. I'll have a look at my CGT return.
 
Yes
Greenbook said:
Believe me @Bronte it is. Have been though it with my tax consultant with my sales. The trigger point for CGT is when you sign the binding contract not when the sale closes.
Click to expand...
I too used an accountant, but I did it up myself based on an old CGT excel I had created a long time ago. I used Date of contract for the Date of Acquisition and used Date of transfer/sale for the disposal date.

As it happens there was a Supreme Court judgment in January on this

www.irishlegal.com

Supreme Court: Clarification of application of Capital Gains Tax timing provision

The Supreme Court has clarified the application of legislation which determines the point at which disposal and acquisition occur in the context of transactions subject to Capital Gains Tax (CGT). Delivering judgment for the Supreme Court, Mr Justice Brian Murray explained that the provision only op
www.irishlegal.com www.irishlegal.com

And

www.legal500.com

InDisputes – Sean Flaherty v The Revenue Commissioners: Welcome Clarity

In the recent Supreme Court (SC) case of Sean Flaherty v The Revenue Commissioners 2026 [IESC] 4, the SC considered when a contract would be considered to be ‘conditional’ for Irish capital gains tax (CGT) purposes. Ordinarily, a disposal is deemed to occur (and a charge to Irish CGT is...
www.legal500.com www.legal500.com

1790260921906.webp
 
Revenue have a new manual on this from last month, so August 2026 (presumably because of the SC judgment.


1790261094599.webp

My reading of that is

- Date of acquistion and date of disposal is the day you sign the contract
Unless
- the contract is conditional, on mortgage approval (most cases) and then the date changes to that date, when the condition is satisfied.

It's a bit unsatisfactory in one respect. Even if you are given mortgage approval, that can be rescinded, fall thru, be changed, right up until drawdown. Drawdown normally happening on the date of transfer.

In my case my date of acquisition was date of contract for CGT, but we got a mortgage, no idea now when that was, might have been the date before we signed the contract or after it. (this is a very long time ago) I guess it doesn't really matter.

And when selling, the purchasers were getting a mortgage, no idea when they got mortgage approval. But we used date of transfer for the CGT.
 
Last edited:
Bronte said:
- Date of acquistion and date of disposal is the day you sign the contract
Click to expand...
That's what I was told, but if the contract is conditional on something, it becomes binding when the condition is fulfilled and that is the disposal date for CGT purposes.

It is all a bit odd, but I've been through a couple of sales now and I have had to get advice on the CGT. I'm sure the guy knows what he is talking about and the Revenue manual backs it up.

I think solicitors try to get the contract signed and binding and the sale closed very close together to prevent you having a binding contract and no cash to pay the CGT, but it is something to watch in case there is a delay.
 
You must log in or register to reply here.
Back
Top