Indexation relief for selling assets
How does Indexation Relief work for capital gains tax?
Indexation Relief (also known as ‘inflation relief’) may be claimed if you owned an asset that you are selling before 2003.
With Indexation Relief, the market value of the asset at the time you became the owner is increased. This increase is based on inflation calculated by the Central Statistics Office.
Brendan bought a rental property in June 1990 for €50,000. He incurred costs of €2,000 on the purchase of the property. He sells the house in 2018.
The purchase price and the costs (€52,000) are indexed by the relevant indexation factor (1.442), totalling €74,984. This sum is deducted from the sale price of the property in calculating the amount of CGT due.
Subject to conditions
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