Expenses allowed when selling house

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A house was purchased in 2019 and renovations were planned. However, due to Covid-19 restrictions, renovations were not possible at the time. A builder agreed to do the job in 2020/2021. Due to a change in circumstances the house is planned to be sold unfinished as soon as possible. The house was not inhabited from the time it was bought to the present. The LPT has been paid each year, although it is uninhabitable as no floors/ doors are installed and the house doesn't have a kitchen or bathroom. Firstly, is LPT x3 payable this year, and are painting, tarmacking etc. expenses allowed against capital gains tax? Thanks in advance for any replies
 
Logo said:
The LPT has been paid each year, although it is uninhabitable as no floors/ doors are installed and the house doesn't have a kitchen or bathroom. Firstly, is LPT x3 payable this year
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Why would it be payable if it was paid already?
Why would it be liable for LPT if it's uninhabitable?
If it IS liable for LPT then you'll have to also pay it for the full 2023 year as you owned it on November 1st 2022.
are painting, tarmacking etc. expenses allowed against capital gains tax?
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For what it's worth:

How to calculate CGT

This page explains how Capital Gains Tax is calculated
www.revenue.ie www.revenue.ie
What are ‘allowable expenses’?

They are costs that you can deduct from the sale price to work out your chargeable gain. These can be:

  • any money spent by you which adds value to the asset (known as ‘enhancement expenditure’)
  • costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset.
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Apologies if my post was unclear. LPT is paid to date (although maybe it shouldn't have been as it doesn't have kitchen/ bathroom). I'm just wondering if it is due x3 for next year as an unoccupied property.
 
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If it was uninhabitable then you may have qualified for an exemption. I don't know if they give exemptions/refunds after the fact but I would certainly contact them to ask.

In fact, I've done this myself for the few years that my mother's house was unoccupied (while she was in a nursing home up to it being sold last week a couple of years after her death) but the LPT was still being paid. Only contacted them today so haven't heard back yet.

As I said, if it is liable for LPT and you don't qualify for the exemption/refund then you'll have to pay the LPT for the whole of 2023 as you were the owner on 1st November 2022.

I don't know what you mean by "I'm just wondering if it is due x3 for next year". I don't understand the "x3".
 
I think the last budget referred to an unoccupied property being liable to LPT payment x3?
 
Oh, you mean the vacant home tax = 3 times the normal LPT liability? I wouldn't have thought that a vacant uninhabitable property would be liable? But then, as I said, I wouldn't have thought that an uninhabitable property would be liable for LPT in the first place.
 
Thanks for the reply - it has been really helpful, although I'm still stumped wrt allowable expenses.
 
Logo said:
Thanks for the reply - it has been really helpful, although I'm still stumped wrt allowable expenses.
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The is plenty of info out there on what sort of expenses are allowable but if you're in any doubt at all then you should probably get professional tax advice on the matter.
 
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