Do i have to pay capital gains tax

S

sophie01

Registered User
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hi,
I tried to find similar posts here but most of them related to inheritance queries. Only that a friend recently told me that i might have to pay capital gains tax made me look into it. Any advice welcome as haven't a clue:

I am just in the process of having a friend buy me out of a property we bought together in 2003 - all fairly straightforward and just finalising it all this week - I have moved in with my boyfriend so am not buying another property immediatly so plan to put away the money i will get and the plan is that we buy a bigger property together in a year or two.

however, a friend told me that i have 12 months to buy another property or else i have to pay CGT - is this true? also, as i didn't sell my property outright but just transferred my half ownership does this maybe make a difference.

revenue.ie didn't have any straightforward info such as "when do you have to pay CGT" so if anyone can answer my query or point me in the right direction it would be great.

just need to know if i am now working towards a deadline?
 
If you lived in the house, and so it was your Principal Private Residence, then there is no CGT on disposal.

So the gain you make on the sale of your half is tax-free.

CGT only applies to gains made on the sale of investment property.
 
Provided you complete the sale of your share of the old house within 12 months of it ceasing to be your PPR, no CGT liability arises, regardless of whether or not you buy a new residence.
 
thanks for the info - very good news! for once the govt aren't trying to get their claws on my money :)
 
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