Capital gains holiday, Budget 2012

Bicky

At the time of the last budget i remember an announcement regarding a holiday from capital gains tax with respect to commercial property.
There is this article from the time which mentions it. However i cant find anything on revenue.ie. Anybody know about this?

In an effort to stimulate the property market, the Minister announced a capital gains tax holiday for capital gains arising on the disposal of property acquired between 7 December 2011 and 31 December 2013 which is held for seven years prior to disposal. Further detail on this incentive was not forthcoming today, however we welcome the statement and look forward to the publication of greater detail on the properties included in the incentive.

MBateson

http://www.revenue.ie/en/press/budget/2012/budget-summary-2012.pdf

There's a brief bit under the CGT section above.

And there's an example here:
http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_gains_tax.html

Bicky

Hello,
Thanks for the reply. I find the situation to be vague. I would have thought a detailed explanation would be on the revenue.ie site.

Where such property is held for more than seven years the gains accrued in that period will not attract CGT

The relief will not apply if a property is sold within 7 years of its acquisition. If it is sold more than 7 years after acquisition and a gain is made on the sale, relief will be given for the initial 7-year holding period. For example, if the property was bought in January 2012 and sold in January 2022, the property would have been held for 10 years, so 7/10 of any gain will be relieved from CGT and 3/10 is taxable.

barneystinson

Bicky wrote: »

Hello,
Thanks for the reply. I find the situation to be vague. I would have thought a detailed explanation would be on the revenue.ie site.

I'm not sure what more detail could be given really - it's about as simple as a tax provision can be?

If you want to read more on it, it's at S.604A Taxes Consolidation Act 1997: the Guidance Notes (at S.604A in the linked document below) as published by Revenue give a fairly concise explanation, but not a whole lot more than has already been quoted above http://www.revenue.ie/en/practitioner/law/notes-for-guidance/tca/part19.pdf

Bicky

Thanks for that. It does seem like a Good incentive. Other than the fact prices are probably going to stagnate or drop for a good few years yet.