A client purchased a Section 50 property (student accommodation) in circa 2005. The original cost was €300,000 and the original Section 50 Relief was €250,000. This Relief has been unused by him to date i.e.there would be no claw back if he can get it sold. The current market value is €75,000. What Relief, if any, is available to a purchaser who pays €75,000 for this property? Is it a quarter of the original unused Relief i.e. €62,500, this percentage being calculated by reference to the proportion the current market value of €75,000 bears to the original cost.
If it has been rented out by my client at any time since the purchase date, without using the Section 50 Relief, does this effect the Relief that can be claimed by a potential purchaser?