CAPITAL GAINS TAX
Capital Gains Tax (CGT) is a long-standing tax which was in operation before the recession. However, it is another one which could catch out accidental landlords and those who inherited property.
You don’t have to pay CGT on any profits made from the sale of your home — as long as it was your sole or main residence. However, should you be selling a second home or an investment property, you must pay CGT on the profit earned. The first €1,270 (or €2,540 if you are a married couple or in a civil partnership) of taxable profits in a tax year is exempt from CGT. Your CGT bill will also be reduced for any years that the property was your sole or main residence. Furthermore, you can write certain expenses off your profits when calculating your CGT bill. These expenses can include stamp duty paid on the original purchase of the property, and solicitor fees paid on the sale and purchase of the property.