Tax implications on the sale of a house?

dovetail said:
What are the tax implications on the sale of a house please?
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Maybe if you were just a little bit more forthcoming.......................?

In what capacity is vendor selling? Is it an owner occupier? Or an investor? Or an executor of an estate?

And is it an ordinary residence occupied by the owner? Or a former family home? Or a tenanted investment property?

Potential taxes are VAT and CGT

mf
 
Hi MF. hank you for reply. I am not too sure what capacity the vendor is selling. I've placed an offer on a house and I am inteested to know the tax implication to the vendor. This is the information that I do know: The owner moved back to the former family home and decided to rent out what had been their ordinary residence (now occupied by tenants). They have now decided to sell the residence occupied by the tenants. ...... base don this information, I assume that CGT would apply to this situation?
 
dovetail said:
Hi MF. hank you for reply. I am not too sure what capacity the vendor is selling. I've placed an offer on a house and I am inteested to know the tax implication to the vendor. This is the information that I do know: The owner moved back to the former family home and decided to rent out what had been their ordinary residence (now occupied by tenants). They have now decided to sell the residence occupied by the tenants. ...... base don this information, I assume that CGT would apply to this situation?
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Its none of your business. Why would you be interested?

You can only second guess what is going on and whose name(s) is/are on what deeds.

mf
 
dovetail said:
Hi MF. hank you for reply. I am not too sure what capacity the vendor is selling. I've placed an offer on a house and I am inteested to know the tax implication to the vendor. This is the information that I do know: The owner moved back to the former family home and decided to rent out what had been their ordinary residence (now occupied by tenants). They have now decided to sell the residence occupied by the tenants. ...... base don this information, I assume that CGT would apply to this situation?
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Crudely speaking, if they're making a gain, the portion of the gain that's attributable to the period when the property was their residence will be exempt.

e.g. Own it for 12 years, live in it for 9 years, make a gain of €100k, €25k taxable and €75k exempt.

That's just a rule of thumb, it's slightly more nuanced than that (e.g. an extra year of deemed occupation etc).
 
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