CGT on sale of site.

R

REZI

Registered User
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Dear readers,

I have received an offer for 65K for a 1/2 acre site. I'm in the process of establishing how much I will receive after tax and expenses are paid. Am I correct on caluclating 22% capital gains tax? Besides solicitors and auctioneers fees are there any other taxes which I'm liable for? Many thanks. REZI

PS The site is secured against a loan so the funds will go directly towards the loan. Any tax difficulties in paying the loan off in one go? Its a loan which was taken out for capital investment.
 
Ordinary CGT is 25% now.
Would the windfall tax on land sales apply to this sale? Was the land was acquired with the intention of selling it, or are you are trading in land.

If you owned the site before 2003 you can still get some indexation on the original costs, though this would be restricted where the sale price is over the "current-use" valuation.
 
The windfall tax only applies to profits from the rezoning of lands.

Profits from trading in development are now taxed at your income tax rate.

However, in your case, you are not trading in land and so you will pay CGT at 25% on any gain, less allowable deductions and your annual CGT allowance of €1,270.

If you have bought and sold sites in the past, Revenue may take the view you are trading in land.
 
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