Capital Gains Tax Query

[denmcn]

Enquiring for a friend.
Deposit paid of 500,000 euro for site.Site held for 4 years at which point buyer had to pay balance or walk away from deal and loose the deposit.Unfortunately the latter has happened.At the time he was able to defer his tax liability until now.His inital contract was for 20 % CGT but this is now 25 %, so what rate does he pay.He incurred alot of expenses with solictors and tax advisors etc , comming to nearly 30,000 euro.Can this figure be taken away from the 500,000 leaving it at CGT on the 470,000.Tks

 

[Joe_90]

Well,
Sounds more like an option? On payment of €500,000 you have the option to buy this site during the next 4 years for x.
Was there a condition in the contract that allowed the CGT to be deferred.
Were the solicitors and tax advisors expenses incurred prior to the payment of the €500,000? It depends on the replies put if the vendor got advice that the tax was not due it will be the 25% rate. If the expenses were incurred prior to the deposit being paid they they would be deductable.
I would go back to the €30K professionals and ask them!