604A Relief for certain disposals of land or buildings

This section gives relief from capital gains tax for property purchased in any state in the European Economic Area (including the United Kingdom) between 7 December 2011 and 31 December 2014 on a disposal of such property, where that property is held for more than 7 years. The gain attributed to that 7-year period will not attract capital gains tax. Where the property is held for at least 4 years and less than 7 years, any gain will not be liable to capital gains tax where the disposal is made on or after 1 January 2018.

The relief will only apply where the property was acquired for full consideration in the case a bargain at arm’s length or for at least 75% of its market value where it was acquired from a relative. Relative for this purpose means a brother, sister, uncle, aunt, niece, nephew, ancestor or lineal descendant.

Any income, profits or gains from the property must be subject to Irish income tax/corporation tax.

The relief will not apply if arrangements have been put in place and it can be shown that the relief would be less if the arrangements had not been put in place.

Relevant Date: Finance Act 2021