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Exemption from Capital Gains Tax (CGT)

  • 04-09-2021 1:46pm
    #1
    NotAPerson
    Registered Users, Registered Users 2 Posts: 4 ✭


    I own an overseas property (vacation home) that I reserved it in 2011 but paid in full in 2014 to obtain payment approval/clearance and possession from the builder of this property. My question is, If I sell this house today in 2021, will I be free from paying any Capital Gains Tax based on what is written on the website URL provided below for CGT exemption.


    https://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_gains_tax.html

    Capital gains exempt from Capital Gains Tax

    Gains or profit on the disposal of some assets are specifically exempted from Capital Gains Tax, these include:

    ·        Gains made on the disposal of property acquired between 7 December 2011 and 31 December 2014 can get relief from CGT in certain cases. However, this relief does not apply if the property was acquired by gift or inheritance. The relief applies to all property, whether residential or non-residential. To get this relief the property must be held for more than 7 years. 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. 

    ·        Gains made on the disposal of property acquired between 7 December 2011 and 31 December 2014 and held for more than 4 years but less than 7 years are exempt from CGT. However, this relief does not apply if the property was acquired by gift or inheritance. To qualify for this exemption, disposal of the property must take place on or after 1 January 2018. For example, any gain from a property bought on 1 June 2012 and sold on 1 July 2018 is exempt from CGT.


    I'd appreciate it if anyone could assist me with this situation, and please feel free to offer any advice you may have.

    Thanks.



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