Indexation Relief (also known as 'inflation relief) may be claimed if you owned the asset you're selling before 2003.
When it comes to 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.
Example
Sean bought his investment property in June 1990 for €50,000. He incurred costs of €2,000 on the purchase of the property. In 2017, he sells the house.
The purchase price and the costs (€52,000) are indexed by the relevant indexations factor (1totalingalling €74,984. This sum is then deducted from the sale price of the property in calculating the amount of CGT due.
In the case of land that is being used for development, relief only applies to a specific value. This is the value that the land would have had at the date you became the owner if it was not development land.
Indexation relief was abolished for the tax year 2003 and all subsequent years. if you became the owner of an asset in 2003, or in later years, you're not entitled to indexation relief on that asset.
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