Sale of personal house

L

Little Sparrow

Registered User
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I bought a house two years ago that I now want to sell as its just too close to my ex.
If I sell it am I liable for tax?
There is 3 acres with the house and I am wondering if I could sell this on it own and hold onto the house as I am too old to be looking after it?
Are there tax issues to selling this land without the house?

Thanks
LS
 
The sale of a residential property and up to one acre which was your sole or main residence is exempt from CGT. So the house would be exempt.

Unless you qualify for the 4 year CGT exemption bought before 31.12.14 then the land will be subject to CGT.
 
I bought the house in December 2015
So if I sold the 3 acres what percentage of tax would I have to pay

Yes I am located in Ireland
 
How long is a piece of string!

Is it just agricultural land or potential a site for a house.

In principal if you acquired the entire property in one transaction you have a part disposal now.

So 3 acres of agricultural land is worth say €30,000 and the house and gardens is worth €370,000 and the entire property cost €350,000 including SD and legals.

So it's €350,000 x 30k/30k+370k =€26,250.

So 30,000 - 26250= 3,750 - 1,270 = €2,500 x 33% = 825
 
Joe_90 said:
How long is a piece of string!

Is it just agricultural land or potential a site for a house.

In principal if you acquired the entire property in one transaction you have a part disposal now.

So 3 acres of agricultural land is worth say €30,000 and the house and gardens is worth €370,000 and the entire property cost €350,000 including SD and legals.

So it's €350,000 x 30k/30k+370k =€26,250.

So 30,000 - 26250= 3,750 - 1,270 = €2,500 x 33% = 825
Click to expand...

But would one of the 3 acres not be part of the ppr and therefore exempt from CGT, leading to a lower tax?
 
RedOnion said:
No, since PPR exemption is limited to 1 acre.
Click to expand...

Yes I know that. But if the property were sold in two lots (a) the house and one acre and (b) the other two acres, then the only CGT payable would be on the two acres in lot b.
 
Taxpert said:
Yes I know that. But if the property were sold in two lots (a) the house and one acre and (b) the other two acres, then the only CGT payable would be on the two acres in lot b.
Click to expand...
Apologies, I misread your post. In Joe's first comment he had covered the first acre being exempt, and I misread your post.
 
The PPR will not automatically apply to the 1 acre unless the garden is an acre, if the garden is only 1/2 an acre then the PPR relief will only apply to the area normally used as a garden.
 
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