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Sale of holiday house - indexation relief

  • 30-06-2021 11:51pm
    #1
    L1011
    Registered Users, Registered Users 2 Posts: 72,192 ✭✭✭✭


    I'm considering buying my parents holiday house off them, at market value, which is possibly 80x what they paid for it in 1977.

    Is it as simple as multiplying the purchase price (if we can even find proof of that!) by the 5.238 indexction factor for 76/77 and deducting from the market value sales price to find the value for their CGT liability? Or are there other factors

    There may be some pre-03 cotss incurred against the house but I think the renovation was mostly 04/05 which has no impact on indexation relief currently.

    I'd expect my solicitor / my parents solicitor on purchase/sale to raise these questions, but I'd like to have some idea of the tax element in advance.


Comments

  • #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    L1011 wrote: »
    I'm considering buying my parents holiday house off them, at market value, which is possibly 80x what they paid for it in 1977.

    Is it as simple as multiplying the purchase price (if we can even find proof of that!) by the 5.238 indexction factor for 76/77 and deducting from the market value sales price to find the value for their CGT liability? Or are there other factors

    There may be some pre-03 cotss incurred against the house but I think the renovation was mostly 04/05 which has no impact on indexation relief currently.

    I'd expect my solicitor / my parents solicitor on purchase/sale to raise these questions, but I'd like to have some idea of the tax element in advance.

    solicitor costs and estate agent costs are also allowed as is personal annual exemption 1270. if jointly owned times x2.


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