Does CGT indexation apply to foreign property?

[Rumpelstilz]

Irish Tax resident John bought a house in Switzerland for 100k CHF in 1975 and wants to sell it now for 600k CHF. Can he get CGT indexation relief so that the purchase price used for CGT would be 100k x 6.080?

 

[Palerider]

Some more information is required, was it rented, was that income declared to Irish revenue, were tax returns done in Switzerland, who owned it, an individual or a corporation, was tax paid on any income in Switzerland.

 

[Rumpelstilz]

The house was not rented, it was owned by an individual and land tax was paid in Switzerland.

 

[jpd]

Irish Tax resident John bought a house in Switzerland for 100k CHF in 1975 and wants to sell it now for 600k CHF. Can he get CGT indexation relief so that the purchase price used for CGT would be 100k x 6.080?

I would say Yes, you will get indexation relief - but perhaps not on 100k CHF - you have to translate the 100k CHF to £ at the 1975 rate and then convert the punts to euros and then index up the euros to get the indexed cost
Convert the sale price to euros and subtract the indexed cost to get the gain which is taxable

on 31 dec 1975 100,000 CHF = £ 18,868 = € 23,962 x 6.08 =€ 145,691
Today, 600,000 CHF = € 536,864
So gain is € 391,173 - give or take a few euro in rounding

 

[mtk]

Didbt indexation relief on cgt stop a few years ago ?

 

[torblednam]

Didbt indexation relief on cgt stop a few years ago ?

A few?! 2003!