Irish Capital Gains Tax Relief for Land and Buildings Situated in an EU/EEA Country
Posted by Gerry HigginsSection 64 Finance Act 2012 introduces an attractive Capital Gains Tax (CGT) exemption for persons (individuals, companies, trusts etc.) in respect of property purchased between midnight on 6 December 2011 and the end of 2013.
If a property is acquired during this period and held for at least 7 years, the capital gain related to that 7 year holding period will be fully relieved from Irish CGT.
The exemption will work to time-apportion gains so that a property held for 10 years will be 7/10ths exempt from CGT, while a property held for 7 years will be entirely exempt (7/7ths).
Land and buildings situated in the EEA countries, includes all EU countries and in addition Norway, Iceland and Leichtenstein.
This is a very attractive relief, in particular with regard to Irish property and indeed UK property held by a non-UK resident (e.g. an Irish resident company). It could also be usefully used in respect of EEA countries with low rates of CGT or low rates of withholding tax for non-residents.
Will this relief on property “acquired” as in if you have acquired property from an inheritance. Thanks in advance.
Paul
I think My last post was not clear . My query is does the word “acquired” cover property recieved from an inheritance.
I am wondering does the word “acquired” cover an inheritance during the period. Thanks in advance
Hi Paul,
Generally for the CGT relief to apply to properties acquired in the period 7 December 2011 to 31 December 2013, the property must be acquired for a consideration (generally market value). The relief from CGT does not apply to inheritances. The purpose of the relief is to encourage people to purchase property and stimulate the market.
However, you should meet with your advisor to ensure this general comment meets your specific circumstances.
Thanks,
Gerry
Thanks for the advice Gerry I will follow up with my advisor. Rgds Paul