Does teenager face inheritance tax bill?
Tax partner with Crowe Horwath (crowehorwath.ie) of acquisition, along with any enhancement expenditure incurred on the property and costs associated with the sale process (such as legal or estate agent fees) are deductible in calculating the taxable gain. Indexation relief will also apply.
This relief is granted by increasing the purchase price, along with any associated costs of purchase, by an ‘indexation factor’.
As a result of this relief, depending on the exact date you acquired the property in 1998, the taxable gain arising on the disposal, after taking account of your CGT personal exemption of €1,270 will be either €81,330 (if acquired before April) or €82,830 (if acquired after April).
The current CGT rate is 33pc, which if applied to the higher amount above would result in a CGT liability of €27,334.