Capital Gains Tax - Compulsory Purchase Order

MCC

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Hi,

Can anyone advise me on the following?

Are you liable to Capital Gains Tax on the sum of money received from a Compulsary Purchase order by the county council of a strip of land off the front garden of a PPR.

Thanks in advance.
 
Re: Capital Gains Tax - Compulsary Purchase Order

Hey MCC

It is possibble that you are liable to CGT. IN some cases you might not be but only where the land being CPO'd is on the one acre surrounding the PPR. It will depend on whether there has been a developmental value applied to the portion.

Ned
 
Re: Capital Gains Tax - Compulsary Purchase Order

Thanks for reply, Ned

The whole site the house is on is an acre...approx. The council took a strip off the front of the garden to widen a public road. It takes from the value of the house and brings the house closer to the road. That strip of land could never have been sold for anything so it wouldn't/couldn't have had a development value?? A settlement figure was arranged.

So can I assume it's not liable?
MCC
 
Sounds like its not. Given that it reduces the value of the house I would be of the view that the amount received whould eb seen as part disposal of residence and not liable to cgt
 
Full relief

A gain on the disposal by an individual of a dwelling-house (including grounds of up to one acre) is exempt in certain
circumstances. The exemption is available if, throughout the individual’s period of ownership, the house had been
occupied by the individual as his/her only or main residence or, under certain circumstances, as the sole residence of
a dependent relative. In the case of a married couple living together only one house can qualify as the only or main
residence of both spouses. This exemption is not affected by the granting of relief under the rent-a-room scheme
(Section 216A TCA 1997). Please note the conditions below where partial relief may apply.

When the private residence comprises development land and the consideration exceeds €19,050, the private residence relief is restricted. This includes the disposal of a garden or part of a garden of a principal private residence as development land, e.g. if sold as a site, or for access, right of way etc. No restriction applies if theconsideration (or open market value, if it is transferred in a non arm’s length transaction e.g. gift ) does not exceed €19,050.


So if you recieve over €19,050 is CGT is due on the full amount??
 
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