Is a "free" house liable for Capital Gains Tax

N

nodo

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I am in the process of trying to sell some development land to a local builder.

He has offered me a "free" house as part of the deal ( and no doubt reducing the amount of cash being offered ). He tells me that accepting the house will not cause me any liability for Gift Tax , or capital gains tax.

I would be quite pleased to accept the house , and pay any tax liable , but would be grateful if any expert reader could confirm if the builders opinion is correct.

My own opinion would be profits from sale of land = Actual cash received + Value of house given to me . I should be due CGT on this total sum, less purchase price of land, and any other expenses

Thanking you for your advice. Nodo
 
Don't rule out the possibility that the entire deal may be taxable to income tax as "dealing in land", s.640 TCA 1997.

There's no way that the throwing in of a free house isn't taxable in some fashion.

And given the likely sums involved, in your position I'd be both hiring a strong tax advisor and steering clear of tax advice from builders.
 
Thank you both for your reply.

Im glad I put the free in commas ! , and glad my question has been sorted. nodo
 
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