Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE -

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.

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