Is capital gains tax applicable on the resale of a flat that would stand to make me around €20,000?ThanksBertie
The basic CGT allowance is €17,086, but if the property has been your main residence for a minimum period of five years the €17,086 deduction rises to €85,430. However, the €85,430 allowance is a lifetime allowance and once it's been used up you'll get no further relief.
Note that the €17,086 is a personal allowance. So if the property is owned in joint names, e.g. husband & wife, each owner is entitled to the exemption of €17,086.
There are some other allowances for capital improvements (must have receipts). Yoou'll need an accountant/lawyer to work out the precise amount you'll need to pay.
Nigel, you really are a fountain of knowledge. Thank you very much for the information.
I'd had a casual offer of purchase made by a friend which was roughly 20,000 more than we paid for it. It's nice to know that the wife and I wouldn't have to pay anything in CG tax.
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