Capital Gains Tax and Indexation Relief

leez123

Hi,

Myself and husband are considering selling a second property that is currently rented out. I am trying to work out the figures to see if worthwhile to sell now or see out the life of the mortgage. I thought I had the basics covered. To summarise: Selling Price 340k, Purchase Price 170k Purchase and Selling Cost and Personal Allowance total 12k.

Profit then 158K at 33% = Tax Liability 52K

I was looking at the Revenue Website in relation to CGT and came across Indexation Relief for houses bought before 2003. They show an example of a House bought in 1990 for 50k and use the multiplier of 1.442 so increased the Purchase Price to 72k and based the profit on this new Price

Our house was bought in 2002 so just wondering if we are entitled to the relief. When I put the figures through the online calculators, they all come back with the 52k I had calculated, so not taking into account any Indexation relief. The multiplier for that year is 1.049 so would inflate the Purchase Price to 178k

Would appreciate if anyone could confirm this or offer any advise.

Many Thanks

kheb

Yes, if it was bought in 2002, indexation relief would apply.