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Capital Gains Tax and Capital Acquisition Tax

  • 12-05-2015 2:00pm
    #1
    stainluss
    Registered Users, Registered Users 2 Posts: 867 ✭✭✭


    They're both at 33% for domiciled property it seems. If I were to sell the property in a short time after inheriting it at (hopefully/nearly) book value, do I pay both (so like 66% of value) or does one cancel the other out via tax credit? I heard something like this a few weeks back but have been googling terms with no joy - I suppose I'm not using the right lingo...
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Comments

  • #2
    dogsears
    Registered Users, Registered Users 2 Posts: 535 ✭✭✭dogsears


    If both CGT and CAT arise on the same event one can be credited against the other. But that's not applicable to the situation you describe.

    However if you inherit something at value 100 (not sure what you mean by book value by the way - CAT will be based on market value), you may pay CAT on this. If you sell it a small time later for 110, you have a gain of 10 i.e. you are treated as having an acquisition cost of 100 at the time of the inheritance, so your profit over that, which is what CGT will be based on, is 10.

    In looking at what amount of CAT you might pay, don't forget about your tax free thresholds etc by the way. You can get that information in the stickies or on the Revenue website.


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