Capital Gains Tax relief holding period reduced to 4 years from 1 January 2018
A capital gains tax (CGT) relief was introduced for those who purchased property (land and buildings) and held onto it for 7 years. The relief is that no CGT is payable on any gain attributed to the first 7 years of ownership on the disposal of the property. This time period has been reduced to 4 years.
Capital Gains Tax Relief for Property held for 7 years
To qualify for the capital gains tax relief for property held for 7 years the property must be acquired by 31 December 2014. Finance Act 2017 reduced the holding period from 7 years to 4 years.
This is understood to mean that an unconditional contract for the property must be in place by 31 December 2014 and that section 542 of the Taxes Consolidation Act 1997 will apply.