CGT status on property acquired between 2011 & 2014

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diceyreilly

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I acquired a property in 2014 by way of inheritance from my Parent. The value of the property was €50k if I sell it now for €120k can I qualify for the exemption from CGT.
 
Thanks & apologies should have said it is a plot of land 2acres. Rented for grazing. If this was inherited ie I did not pay the €50k but the value was €50k would that make a difference.
 
So it's land and not "a property" i.e. a house?
In that case ignore my comment about the 7 year exemption.
I would expect that this would be assessable for CGT as normal but I'm not a tax expert and have no idea about any special treatment of farming land that may apply.
Others may know more but you may also want to get specific professional tax advice.
 
@ClubMan is correct that the relief will not apply, but it's not for the reason stated.

Property is defined as land or buildings in the EEA (including the UK).

The issue is that the property must have been "purchased" in the relevant period. Inherited land, or land acquired from a connected person for a consideration less than 75% of the market value, doesn't come within the relief.
 
torblednam said:
The issue is that the property must have been "purchased" in the relevant period. Inherited land, or land acquired from a connected person for a consideration less than 75% of the market value, doesn't come within the relief.
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That viewpoint has been confirmed by leading tax consultants as totally untrue. Revenue did argue on that basis for a number of years but later conceded the point.

The OP definitely needs tax advice if they wish to pursue this.
 
Thanks to all for input / feedback. Can I ask where could I go to get confirmation that the Revenue conceded their argument. If it is in order are recommendations for Tax advisor allowed if not thanks for the above.
 
T McGibney said:
That viewpoint has been confirmed by leading tax consultants as totally untrue. Revenue did argue on that basis for a number of years but later conceded the point.

The OP definitely needs tax advice if they wish to pursue this.
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Revenue has conceded that "purchased" in that context doesn't actually mean purchased in the normal sense of the word? Not doubting you, but if you have ready access to anything published on it I'd be interested to see it.
 
torblednam said:
Revenue has conceded that "purchased" in that context doesn't actually mean purchased in the normal sense of the word? Not doubting you, but if you have ready access to anything published on it I'd be interested to see it.
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I've heard it enough times in CPD lectures from the most expert of consultants that I've absolutely no doubt that what I say is true.
 
T McGibney said:
I've heard it enough times in CPD lectures from the most expert of consultants that I've absolutely no doubt that what I say is true.
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Ah okay, I was looking at the current version of the legislation, which now says "purchased" where originally it said "acquired" - so now it makes sense!
 
According to this https://irishbroker.ie/tax-update-recent-amendments/ (link) re the legislative change introduced in Finance Act (No. 2) 2023:

"Section 604A TCA 1997 provides for CGT relief on the disposal of land or buildings acquired between 7 December 2011 and 31 December 2014. The land or building must have been held for at least 4 years prior to sale and, if owned for longer than 7 years, the relief is proportionate to effectively exempt 7 years of the gain from CGT.

The amendment to the legislation provides that relief is only available on property that was ‘purchased’ for full market value or ‘purchased’ from a relative for at least 75% of market value. This sets out to avoid situations where properties may have been transferred and a deemed market value was imposed rather than consideration transferring. The amendment will be applied retrospectively to disposals made on or after 1 January 2018."
 
Not sure where this leaves this. Shall I take inheriting the land excludes this transaction from any relief.
 
diceyreilly said:
Not sure where this leaves this. Shall I take inheriting the land excludes this transaction from any relief.
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If this is correct and complete then I would expect so.
AAAContributor said:
relief is only available on property that was ‘purchased’ for full market value or ‘purchased’ from a relative for at least 75% of market value.
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Was your original query specifically about the 7 year exemption rule or did you have some other relief in mind?
 
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