Capital Gains Tax

Capital Gains Tax

Capital Gains Tax is a tax charged on any capital gain arising from the sale of any asset acquired after the 19 August, 1985.

You are liable for Capital Gains Tax if your capital gain exceeds your capital loss in any financial year. Any capital gain must be reflected in your tax return for that year.

You ordinarily do not pay capital gains tax on your principal place of residence. If you have had more than 1 residence in which you have lived over the same period, have rented out your house, used it for business and claimed a deduction or lived away from it for a lengthy period, you should check with your accountant. Generally, investment properties are subject to Capital Gains Tax when sold.

When determining a capital gain or loss it is important to keep all documentation relating to the purchase or sale of the property and all expenses associated with the purchase or sale as these may form part of your cost base reducing any capital gain.

It is important to consult with your Accountant particularly prior to purchasing or selling property if you may be liable to pay Capital Gains Tax.