With careful planning, it may be possible to reduce your capital gains tax liability. Here are some strategies to consider, but it’s important to consult an accountant or financial adviser before taking action.
Consider joint ownership with your spouse – Remember, everyone has their own CGT allowance. If you jointly own a property with your spouse, you can effectively double your tax-free allowance.
Time the sale carefully – If you’ve used up your annual CGT allowance, you could consider postponing the sale of your property and use your next year’s allowance.
Nominate the property as your main residence – If you own multiple homes, you should think carefully about which one you register as your main residence. The rules on this are very strict, however, so speak to your adviser to determine the best approach.
Deduct eligible costs – Make sure you deduct allowable expenses from your gain, for example, buying and selling costs, to mitigate your CGT liability.
Capital gains tax on Irish property is complicated, so it’s always best to consult an expert for advice tailored to your situation.