Owned it before 2003? Indexation relief

Costs paid before 2003 are increased by Revenue's multipliers before the gain is worked out. It can reduce a gain, but never create a loss.

If you paid for an asset, or improved it, before 1 January 2003, those costs are increased for inflation before the gain is worked out. Indexation stopped at the end of 2002, so costs from 2003 onwards are not increased.

How it works

Each cost is multiplied by Revenue's multiplier for the tax year it was paid. For sales from 2004 onwards, the multipliers include:

Before 2001, tax years ran from 6 April to 5 April. Assets owned before 6 April 1974 use their value on that date and the 1974/75 multiplier.

Revenue's example

Niamh bought an investment property in June 1990 for €50,000, with €2,000 of costs, and sold it in September 2018 for €210,000.

It can't create a loss

If indexation would turn a gain into a loss, the result is no gain and no loss. If there is a loss before indexation, indexation can't make it bigger.

Work it out

• Capital Gains Tax on property →

Sources

• Revenue: Capital Gains Tax Multiplier Table (checked 25/10/2026)
• Revenue: How to calculate CGT (checked 25/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.