pernickety
Registered User
- Messages
- 175
You don't say how long you have owned it for in total. Let's assume that it was 12 years for want of a more accurate figure. In this case (12 - 6) / 12 or 50% of any resale gain (calculated with reference to the original purchase price and the eventual sale price) net of any allowances and allowable expenses (including indexation of the purchase price up to December 2003 or whenever the cut off point is) is assessable for CGT. Note that intermediate valuations (e.g. at the point in time when the property was initially rented) are irrelevant. Note also that the first 12 months following vacation as your PPR is not liable for CGT. If in doubt get independent, professional advice.pernickety said:5. Question on CGT: As it was our residence for almost 5 years, is CGT calculated on the original purchase price compared to sale price, or on the valuation at the time of moving out/renting compared to sale price?
pernickety said:Hello,
We have decided to sell our property in Dublin which is currently occupied by tenants until end January.As it's quite soon and we do not live in Ireland I have asked the tenants if they wish to renew for 3 months.
I have a few questions:
1. What do you believe is a better time to go to market - Feb or May?
2. If I sign up with an agency to sell, how long does it take to get it "on the market" generally?
3. I had intended to wait until tenants move out to clean it well, touch up paintwork, brew the coffee etc. etc in preparation for viewings. However one agency suggested I should hold viewings while the tenants are still there to avoid missing out on rent. I think I could also ask for a mortgage payment holiday. Would you have a preference one way or the other?
4. I've seen other threads about agency fees and how some people have managed to bargain down to ~1%. Just wondering if this includes VAT or not?
5. Question on CGT: As it was our residence for almost 5 years, is CGT calculated on the original purchase price compared to sale price, or on the valuation at the time of moving out/renting compared to sale price?
Thanks for your help on this.
I am assuming that it was your PPR for the first five years of ownership. If it was rented out within five years of purchase as a PPR then a clawback of stamp duty (see ) applies. Either way (8 - 6) / 8 = 25% of any resale gain is assessable for CGT.pernickety said:Thanks clubman,
"In this case (12 - 6) / 12 or 50% of any resale gain"
We will have owned it for 8 years
It's all explained in [broken link removed]. If you don't know what CGT indexation relief is then you should really get independent professional advice when calculating your tax liabilities and making your returns."including indexation of the purchase price up to December 2003 or whenever the cut off point is"
could you explain this, I'm afraid I wouldn't know indexation if it bit me in the a**e!!
Yes."the first 12 months following vacation as your PPR is not liable for CGT"
Is that why you said 12-6 instead of 12-5?
Yes.So I should take 8-6/8 = 25% of sale-purchase price (less allowable expenses)??
Well that changes the calculations for one thing - 4.5 is not 5! For another thing it's possible that you paid less in SD than an investor would have so the balance would be due under the clawback rules. You'd need to check to be sure what outstanding liability, if any, you have in this respect.pernickety said:Clubman, it was rented after 4.5 years but as it was second hand when we bought we already paid stamp duty.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?