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Have you ever wondered what taxes you
might have to pay if you sold a property.
Capital Gains Tax (CGT) may be one of
these.

What is Capital Gains Tax?


If you’re selling a property in Kerry or beyond, you may have heard about Capital Gains
Tax and may be wondering whether or not you’re liable to pay it. As experts in property,
our team at Mannix Property Services are on hand to give you all the guidance and
information you need.

How Do I Calculate Capital Gains Tax?

If you sell a property that is not your primary residence, for more than you paid for it,
you will have a capital gain which is taxable.
To calculate the amount of Capital gains tax you owe, you need to subtract the price
you paid for your property including other allowable expenses from its selling price to
work out the profit.
The government website has a handy online calculator that you can enter this figure into
to determine the amount you need to pay, but there are some considerations to take
into account first, since they could affect how much you owe overall. We always
recommend you consult a Capital Gains Tax professional who will be able to answer
questions relating to your individual circumstances.

Exemptions from Capital Gains Tax

Enhancement costs – any money spent on enhancing (adding value) of the building
over the years can be netted against the taxable gain. Furthermore these expenses can
be indexed up to today’s value and not just the amount you paid at the time of doing the
work. General maintenance expenditure is not permissible.

Buying and Selling Costs – When you bought your property you incurred expenses such
as legal fees and surveyor’s fees. When you sell you will incur estate agency fees and
legal fees. These expenses can be netted against your gain. The costs associated with
purchasing can be indexed up to present value.
The first €1,270 of taxable gains in a tax year are exempt from CGT. If you are married
or in a civil partnership, this exemption is available to each spouse or civil partner but is
not transferable.

What if I lived in the property for a period of time?

If you lived in the property for a period of time but also rented the property for a period,
the gain that accrued during the period in which you lived in the property is not taxable
for CGT purposes. So calculate the full gain and then exclude the percentage of gain
that occurred while living in the property.

What if I bought between 7 December 2011 and 31st December 2014?

Currently no CGT will apply to gains on purchases made between 7 December 2011
and 31 December 2014 where the property is held for at least seven years. This
includes all EU and EEA located properties. Gains on properties held for longer than
seven years will be time apportioned. Finance Act 2017 reduces the required holding
period from seven to four years for disposals made on or after 1 January 2018. The aim
is to reduce any impact the required seven-year holding period may have on the supply
of development land, with the intention of increasing supply so more houses can be
built.

Selling a rental property?

If you’re ready to sell a property in Co. Kerry whether it’s your primary residence, a buy-
to-let property that you own, or a second home, get in touch with us here at Mannix
property Services. We can help you with all your selling needs, and as experts you can
count on us to offer you an exceptional level of service. Give us a call today on 066 716
3853 or click here

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