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Capital gains tax. Adjusted for inflation?

  • 16-02-2018 12:44pm
    #1
    bacon?
    Registered Users, Registered Users 2 Posts: 784 ✭✭✭


    If you bought a house in 2005 for 320,000Euro, adjusting for inflation, that would be over 400,000Euro today.
    If you sold the house today, for 400,000Euro, then there's no capital gains tax, right?


Comments

  • #2
    ruthy_2504
    Registered Users, Registered Users 2 Posts: 74 ✭✭ruthy_2504


    Prices aren't adjusted for inflation as such, but indexation of cost price stops in either 2001/2002, so if purchased since then it's euro for euro


  • #3
    Lumen
    Registered Users, Registered Users 2 Posts: 31,230 ✭✭✭✭Lumen


    I assume you know that there's no CGT on a PPR.


  • #4
    bacon?
    Registered Users, Registered Users 2 Posts: 784 ✭✭✭bacon?


    What's PPR?


  • #5
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,690 Mod ✭✭✭✭Stheno


    bacon? wrote: »
    What's PPR?

    The house you live in your principle primary residence


  • #6
    bacon?
    Registered Users, Registered Users 2 Posts: 784 ✭✭✭bacon?


    ruthy_2504 wrote: »
    Prices aren't adjusted for inflation as such, but indexation of cost price stops in either 2001/2002, so if purchased since then it's euro for euro
    Wow, so for some reason they decided inflation doesn't exist after 2002?


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  • #7
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    bacon? wrote: »
    Wow, so for some reason they decided inflation doesn't exist after 2002?

    No, it was quite deliberate. CGT is a tax on inflation. Its a wealth tax by another name, triggered when an asset is sold, which is one reason why the property market is more stagnant than it should be.


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