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Given the recent demand and the cost of houses rising at such a rapid pace, it is hard to believe that there was a period in which major tax incentives were introduced to prop up the housing market.

After the 2008 economic decline, low house prices posed a risk due to homeowners realising they were in negative equity and the potential for them to stop making mortgage repayments was more likely.

One of the actions taken by the Government within this time was the introduction of an exemption from capital gains tax for property acquired between 7 December 2011 and 31 December 2014.

Originally designed as an exemption based on a minimum seven-year holding period, this was aimed to taper off the relief for each year property was held over this period.

This relief was applied to property, including land or buildings, located in Ireland or any European Economic Area (EEA) state. However, the relief was later altered to reduce the holding period from seven years down to four.

Because of this change to the holding period, the relief is now applied in full for any property sold in the period from four years to seven years after purchase.

This means that a property bought between this intervening period from when the relief was active, between 7 December 2011 and 31 December 2014, is now eligible for relief.

However, any property bought at the earliest side of that period is partially liable to capital gains tax.

It is important for all property owners who bought between these two dates to consider their next moves.

Whether you are considering deferring selling for a year or transferring such property to children, as part of a succession plan, everyone should seek tax advice relevant to their specific circumstances.

At McMahon & Co., our job is to help you plan your activities to take advantage of the available tax reliefs and discuss with you in advance the tax implications of any decisions.

For more help or advice, please contact us.