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CGT on property sale

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  • 05-09-2007 10:35pm
    #1
    bobzi
    Closed Accounts Posts: 31 ✭


    My old man has had to stop working recently and since he or me ma now have no income they will need to start cashing in their assets fairly soon. They own a second property which is worth about €500k and were thinking of selling

    Any ideas on how much GCT they'll have to pay given that it was bought in the early 90's for £45,000? Also are there any tax breaks available to people who are retiring?


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    #2
    faceman
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators, Social & Fun Moderators Posts: 16,587 CMod ✭✭✭✭faceman


    i dont think there are tax breaks im afraid. The CGT rate is 20% on the and unless the property was bought prior to sometime in the early 70's then they will have to pay. They would obviously only pay the CGT on the profit they make and not the entire sale.

    full info here.

    http://www.revenue.ie/index.htm?/revguide/capitalgainstax.htm


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    #3
    uberwolf
    Registered Users Posts: 7,580 ✭✭✭uberwolf


    would they consider letting the property and using the income to top up their state / other pensions?

    if not CGT will be applied on the difference between ((sale price - cost of disposal) - ((Purchase price + cost of purchase i.e stamp duty, solicitors fee's, estate agent, etc) * indexation)

    if they spent any money on extending / upgrading the property then that is allowable as well. But not decorating/ maintenance.


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