In Finance Act 2012 (section 64 inserting section 604A into the Taxes Consolidation Act 1997 as amended (TCA)) a capital gains tax (CGT) relief was introduced for those who purchase property (land and buildings) and hold 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.

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.

Conditions to satisfy for CGT relief

The conditions to avail of this relief are:

• The land or buildings must be situate within Ireland or an EEA State (an EU Member State or Iceland, Lichtenstein or Norway);

• 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);

• The land or buildings must have been acquired in the period between 7 December 2011 and 31 December 2014 (extended by Budget 2014);

• The land or buildings must be held by the owner for at least 7 years from the date acquired; and

• Any income or profits or gains derived from the land or buildings must be within the charge to Irish income tax or corporation tax.