CGT Tax on site attached to our house

M

mcdonst

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Hi all.

We bought a house 2 years ago. The site has room to put another 3 bed comfortably on it.

I am looking at what the best option would be to do.


1st option sell as site with PP. How do I work out the value of CGT if I just sell it as a site with PP. Say we bought the 4 bed house for 700k. the Site is approx 750sqm with the house and new site would be 225sqm. Site would be approx worth 350k

1st option sell as site with PP.

2nd option was to build a house on the land and if we lived in the house for say 12 months could we then claim it as out PPR, sell it and then move back into the original house?
That should then count for no CGT, correct? Would Vat be applicable on that sale?

Thanks
 
If the house is not your PPR and CGT applies, the calculation would go like this.

Acquisition cost of entire property: 700k.

Disposal proceeds of part of property: 350k

Market value of residue of property after the disposal: say 550k

Acquisition cost is apportioned: 700k x (350/(350 + 550)) = 306,250

Chargeable gain: 350,000 - 306,250 = 43,750
 
Thanks Clubman, They are quite old and nothing 100% what Im looking for.

Thanks Tom Edison. So the 43750, its taht the tax or 33% of that?
 
mcdonst said:
So the 43750, its taht the tax or 33% of that?
Click to expand...
Chargeable gain is the amount on which tax is calculated.

How to calculate CGT

This page explains how Capital Gains Tax is calculated
www.revenue.ie www.revenue.ie
CGT is only applied to the ‘chargeable gain’, not the whole amount you receive. The chargeable gain of an asset is the difference between: ...
Click to expand...
You should probably get professional advice on this issue.
 
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