Capital Gains Tax relief on property held for 4 years

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Capital Gains Tax relief on property held for 4 years

Are you eligible to avail of the Capital Gains Tax (CGT) relief on property held for 4 years? How can you check?

Prior to 1 January 2018 the property had to be held for 7 years (but the time period was reduced to 4 years from 1 January 2018).

Also the property must have been acquired by 31 December 2014.

Section 604A of the Taxes Consolidation Act 1997 provides for this relief.

It applies to those who purchased property (land and buildings) before 31 December 2014 and then hold onto it for 4 years.

The relief is that no CGT is payable on any gain attributed to the first 4 (or maximum 7) years of ownership on the disposal of the property.

If the property is held for more than 7 years the taxable gain excludes the portion calculated as:

total gain * 7 years/total period of ownership.

 

CGT Exemption if property  held 4 years

Conditions to satisfy for CGT relief

The conditions to avail of this relief are:

  1. The land or buildings must be situate within Ireland or an EEA State (an EU Member State or Iceland, Lichtenstein or Norway);
  2. The land or buildings must be acquired at market value (or at 75% or more of market value if purchased from a relative (as defined in section 10 TCA which includes brother, sister, uncle, aunt, niece, nephew, ancestor or lineal descendant);
  3. The land or buildings must have been acquired in the period between 7 December 2011 and 31 December 2014;
  4. The land or buildings must be held by the owner for at least 4 years from the date acquired; and
  5. Any income or profits or gains derived from the land or buildings must be within the charge to Irish income tax or corporation tax.

For information on claiming this relief please contact Michelle
 

Disclaimer

The material in this article is for general information purposes only and does not constitute legal or taxation advice. Specific legal and taxation advice should be sought before acting. All information and taxation rules are subject to change without notice.

No liability whatsoever is accepted by M. McLoughlin & Co. for any action taken in reliance on the information in this article

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