CGT on sale of corner site

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Hi everyone

Just wondering if I sell my corner garden site to a builder (value approx Euro 200K), would I be liable for CGT on it?

Grateful for all replies!!


LM
 
I would assume so since it wouldn't be the same as the sale of your PPR (Principal Private Residence) so would not be exempt from CGT. I'm not sure how the effective acquisition cost would be ascertained though so that you could work out your assessable gain - presumably the original acquisition cost of the property would be split in some way between the property and the grounds and then a portion of the latter cost would be attributed to the portion of the site which you are selling off. Best to get independent, professional opinion on the tax and legal matters involved but maybe somebody here with prior experience of a similar deal can comment?
 
Thanks for that, Clubman.

However, just on that note. It doesn't make sense that I would be penalised CGT on the sale of the site alone on the basis that if I were to sell my private residence to include the corner site to a builder (assuming I have full PP to build a detached residence on the corner site), I could sell for approx Euro 700K without any CGT forthcoming (as this would be my principal residence) as opposed to selling the site alone and being liable for CGT on it.

What you're saying, I assume, is that if I just sell the corner site, I will be liable for some sort of CGT but not if it's sold as part of my principal residence. Somehow, it doesn't seem fair.

Anyhow, thanks for any help.

Cheers.

Larmo
 
The sale of part of your garden (a garden can be up to 1 acre) would be exempt from CGT as it would be considered a sale of part of you PPR

But,

if the value placed on the land is largely based on the fact that is has development potential then it will not be exempt as is would be considered "development land"

It can be a tricky area and one where profesional advice will be your best route as it will save you tax
 
What I posted anove was just my non-professional opinion/understanding. I'd guess that Stuart knows more about the nitty-gritty than me although my understanding of the sale of part of the garden as a development site seems to match his. As ever best to get indepedent, professional advice in addition to canvassing opinion here.
 
Thanks, lads

Once I get the professional advice on this, I'll update post. However, from looking at the Revenue rules, it looks like they will assess the extra value on the land as developmental land. Not sure how they assess it, but will find out.

Cheers!

Larmo
 
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