Capital gain tax. Sell my home. do i apply

karl dub

Hi all.

I was thinking of selling my home. I bought my home of 75000 and and put 20000 euro into doing up my home. The house is work about 125k. If i sold my home now. Would I have to pay any Capital gain tax or any tax on the sale or profit of my house. Does the money that i put into do the house mean anything. I was thinking of selling but not if i have to pay 33 percent in tax.

thanks
karl.

DivingDuck

According to the Revenue's site, you should be in the clear:

Do all disposals of assets give rise to CGT liability?

No, not all disposals (of assets) give rise to a charge of CGT. For example, any gains arising in the following circumstances are not regarded as giving rise to chargeable gains and hence are not liable to CGT

Gains from the disposal of Governmental Stocks and Securities.
Gains from the disposal of tangible movable property, where the amount or value of the consideration does not exceed €2,540.
Gains from the disposal of wasting assets, i.e. assets with a predictable life of less than 50 years, for example, a private motorcar, livestock etc.
Gains from the disposal of your principal private residence.
Prize Bond, Lottery and Gaming winnings.

If you are selling your home/principal residence, all proceeds of the sale should be exempt from CTG.

karl dub

There must be some tax that i have to pay, what about stamp duty. The government is not going allow me to get away scot free. It seem to good to be true

DivingDuck

Stamp duty of 1% will be involved in the transaction, but is paid by the purchaser, not the vendor. The €1,250 the government gets will be paid for by the buyer in addition to the €125k they give to you.

You will, however, have to pay solicitor's fees, and auctioneer's fees. Auctioneer/Estate Agent fees will be 1-3% of your sale value (€1250-€3750), and solicitors fees should be in the ballpark of €1500. It becomes more complicated if you are dealing with a mortgaged property, which I assume is not the case for you?

You will also face costs if you are looking to buy another property in which to live (buyer's stamp duty, solicitor's fees, survey, etc.), but that's a whole other matter.

Into The Blue

You're in the clear. The balance, once mortgage, solicitor and estate agent are paid, will be transferred into your current account.

No tax liability.

athtrasna

This is one for the Taxation forum

CIARAN_BOYLE

DivingDuck wrote: »

According to the Revenue's site, you should be in the clear:



If you are selling your home/principal residence, all proceeds of the sale should be exempt from CTG.

Be careful about this advice, has the property always been your ppr? if not the relief could be restricted.

DivingDuck

CIARAN_BOYLE wrote: »

Be careful about this advice, has the property always been your ppr? if not the relief could be restricted.

That's why I said "should be" all right, and linked to the Revenue's site which further states:

Relief may be restricted where the home was not your main residence throughout the period of ownership (other than the final 12 months), where any part of it was used exclusively for the purposes of a trade, business or profession or where it is sold as development land, for example part of the garden

In the majority of cases, the relief will apply, but as the poster above points out, there are some restrictions involved if:

- you haven't always lived there since you bought it, or
- you've been operating a business from it, or
- the value of the property is greater than average for the size/condition/area because there is "development potential" i.e. a big garden that could be used to build a second property, etc.

If none of those apply, you should be all right, but this is definitely something you should raise with your solicitor during the process of selling.