CGT

Husq430x

Hi All,

Some guidance please if possible? We have a country house that is gone sale agreed as We are relocating to a townhouse. We will be funding the sale of our existing house to purchase the town house (which is been bought off plans) However if for some reason the sale of our current house falls through and we end up renting in the town for a few years what would be the situation with paying Capital gains tax if say in a few years time we put our current house up for sale? (If we were renting in the town we would be offering out our current home to tenants in the meantime.

History of current house:

I acquired the site from my parents and started to build it in 2008. Recession hit and over the years slowly got it do a decent stage. (Just an ensuite to finish off now).

House is gone sale agreed for €640k

It would cost about €700k to build it now. But in reality I built it for about €300k.

What capital gains tax would I/We be paying if We sell in a few years time? Rates can change depending on budget? But what would be the principle

of how its calculated? And approximately how much CGT would need to be paid

Cheers

Explosive_Cornflake

If it's your principal primary rate, there's no tax.

If you're living else where, then the CGT is the difference between acquistion and sales cost, minus selling and acquistion costs, and then that figured is pro rated for the years you lived in it.

So, saw it costs you 300k all in, and you sell for 700. Deduct sales fees from the 400. And then say you lived in in it for 9 out of 12 years, you pay CGT on 25% of the 400k.

There's examples on revenue here

Example 2 is what you want to look at.

Husq430x

Thanks for this EC.

Seems like best try get the sale through now while it's our principle place of residence rather than having to pay a large sum a few years time.

Husq430x

CE

So having lived in it for 14 years if we now rented it for another 14 years would We would pay 50% x €400000 on CGT if we put it up for sale in 14 years from now. (Based on todays rules. Things might be different in 14 years).

Cheers

Explosive_Cornflake

Exactly, and keep a note on all your costs, an accountant can write a lot of them off

Husq430x

Great thanks. Its a 3000sqft house with A1 rating so might have cost a bit more than €300k!