sale agreed, pay CGT now or later

[pernickety]

Hi all,
Not sure if this should go under Mortgages... or here.... but here goes.

We've got to the happy phase of going Sale Agreed on our property in Dublin, and buyer wants to close quickly which suits us. When our solicitor receives total money on closing, will he organise paying off mortgage and finalizing everything with bank? Then there's capital gains tax to be paid, does he have anything to do with this or is it up to me to declare this in my next tax return? Will he just issue a cheque net of outstanding mortgage amount to me?
Thanks.

 

[asdfg]

We've got to the happy phase of going Sale Agreed on our property in Dublin,

Is this your PPR, if so no CGT is payable.

Then there's capital gains tax to be paid, does he have anything to do with this or is it up to me to declare this in my next tax return?

You have to declare and pay by 31/10/06.
Don't forget to deduct the additional cost when buying & selling including stamp duty, any improvements/enhancements made to the property and multiplier effect (if applicable). See here for a more detailed explanation

 

[pernickety]

thanks for that. it was ppr but was rented for almost 2 years so some cgt to be paid.

 

[casiopea]

Don't forget to deduct the additional cost when buying & selling including stamp duty

Does this apply if youve only paid the ppr stamp duty? ie didnt buy the property as an investment property and it wasnt rented out in the first 5 years?

Kind regards,
cas.

 

[asdfg]

it was ppr but was rented for almost 2 years so some cgt to be paid.

If it was rented out within 5 years of purchase then stamp duty clawback will apply
If the rental was in the last two years then CGT is payable on one year only as you are allowed 12 months to sell property. The actual amount due is calculated on a month to month basis.

Quote from revenue site

However, a period of up to twelve months immediately before the end of the period of ownership is treated as a period of occupation even though the owner may not have been actually living in it during that period.

Does this apply if youve only paid the ppr stamp duty? ie didnt buy the property as an investment property and it wasnt rented out in the first 5 years?

Not sure about that one. best bet is to talk to your solicitor or contact revenue better still email them. They are usually pretty helpful. Ask them to quote the legislation / advise from their website as they will not otherwise stand over advise given​

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[ubiquitous]

contact revenue .... Ask them to quote the legislation / advise from their website as they will not otherwise stand over advise given

They most certainly will NOT stand over advice given. I can't see how getting them to refer you to a web link will change this.

Not sure about that one. best bet is to talk to your solicitor

Never ever rely on a solicitor as a source of tax advice, unless they are adequately experienced and/or professionally qualified to do so, AND they hold specific professional indemnity insurance in respect of tax advisory services. Otherwise you are likely to have absolutely no comeback against them for the consequences of false or misleading advice.

 

[casiopea]

Thanks guys,
Ill contact an accountant on that one.
cas

 

[asdfg]

I can't see how getting them to refer you to a web link will change this

I am aware that revenue will not stand over any advise given but by asking them to advise where it is in legislation or on their website you might have some comeback (you can at least quote from the legislation in your defence. Get the link and talk to a tax advisor if unsure.

I also take your point on the solicitor.

Ill contact an accountant on that one.

Make sure that accountant can give specialist tax advise.

 

[ubiquitous]

...by asking them to advise where it is in legislation or on their website you might have some comeback

Unfortunately, as I mentioned above, doing so will make absolutely no difference.