Taxes Consolidation Act 1997 section 604A

Relief for certain disposals of land or buildings

Section 604A provides relief from capital gains tax on the disposal of land or buildings purchased in any EEA state (or the United Kingdom) between 7 December 2011 and 31 December 2014, where the property has been held for a minimum period.

• Where the property is held for at least 4 years but not more than 7 years and the disposal is made on or after 1 January 2018, the entire gain is exempt from capital gains tax.
• Where the property is held for more than 7 years, relief is proportional: 7 divided by the total number of years of ownership is applied to the gain, and only the balance is chargeable.
• The property must have been purchased at market value, or if purchased from a relative, for consideration of not less than 75 per cent of market value at the date of acquisition.
• Relief is denied where arrangements have been put in place that have the effect of increasing the relief beyond what it would otherwise have been.