With regards to the 7 year capital gains relief that was introduced some years ago. I purchased a property and signed the non-conditional contract by 31st December 2014, and it closed some months later. What do I count from for the purpose of the exemption, the contract date or the completion/closing date? I need to know what date I have to sell it by to avail of the capital gains tax exemption.
The contract date is the relevant date.
You don’t have to wait seven years – as legislation was changed to reduce the time to four years. Furthermore you don’t have to sell by year 7 to get the exemption. For example if you sell in year 9 you get 7/9 of an exemption.
It doesn’t always hold that it makes senses to sell to avail of the full exemption. How prices go in the future determines which is the best option to maximise the relief.
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