CAPITAL GAINS TAX INCENTIVE RELIEF ENDS ON 31ST DECEMBER 2013

Reaching For A HomeBudget 2012 introduced the CGT incentive relief for irish tax residents either an individual or a company.

It applies to:

  • Land and residential/commercial properties
  • Bought in the European Economic Area (EEA) including  Ireland.
  • Purchased between midnight 7th December 2011 and 31st December 2013.
  • Must be acquired for a consideration equal to the market value of the property (if acquired from relative-not less than 75% of market value.)

The property must be held for at least seven years from the date of acquisition.

If all above conditions are met then there is no chargeable gain for Capital Gains tax purposes on the proportion of any gain on disposal of the property relating to the seven years of ownwership.

Example: Property is held for 10 years. Capital gains is due on 3/10.

This relief ends in less than six months