Does teenager face in­her­i­tance tax bill?

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

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.

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