Question:
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.
Response:
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.
Response credit:
Cathal Lawlor
Lawlor Partners
Solicitors and Chartered Tax Advisers
Tel +00353 1 872 52 55
Website: www.lawlorpartners.ie
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