Tax on capital gains (CGT) is due upon the sale of shares and stocks as well as other items than household goods, personal possessions up to PS6,000 as well as private motor vehicles. Except for certain exemptions the tax is not payable CGT on any gains that you realize when selling your house. On contrary, you can offset any loss against gains elsewhere.
Capital losses are offset against capital gains during the tax year in which they occur, and following that, you can avail of an annual exclusion of PS7,500. In the end, a small number of individuals pay CGT. You can also read more about capital gain tax on inheritance through an inheritance tax (IHT) guide. If the net outcome of the year's activities prior to an annual exemption results in a loss it is able to be carried forward to the next year.
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The annual exemption is not carried forward, but it can be used to offset the gains prior to any loss brought forward that is not used, which could be carried forward. With regard to taxes on income, investments that are exempt from capital gains tax must be beneficial investments on their own. Taxed gains are better than none in the first place.
If you purchase before April 1998 the cost may be indexable and is adjusted according to the rate of inflation cumulative (RPI) between the purchase date and April 1998. However, the indexation process cannot be used beyond breakeven, i.e. it is not able to make losses.
