Tax on House Sales

Tax on House Sales

....If you sell a house within 2 years of purchase then you will be liable for Income Tax on the profit on the sale.
This is known as the Bright Line test introduced by the Government from 1st October 2015.

The purchase date is the date of registration at the Land transfer Office but the sale date is the date of signing of the sale agreement whether or not the sale agreement is unconditional at that time.

There is a main home exemption but that cannot be claimed if you have claimed it more than twice in 2 years.

This Tax does not alter existing Tax rules. In particular if you purchase a property with the intention of selling it for a profit then tax is payable even if sold after 2 years.

Tax rules are complex and this is a brief summary of some aspects affecting sales of residential property. Contact us for advice as to your particular situation. In some cases the complexity will warrant referral to Tax specialists outside of our firm.



Date Added: Wednesday, 3rd August 2016


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