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80% Tax on Land

  • 28-12-2009 10:17pm
    #1
    YummyMummy84
    Closed Accounts Posts: 12 ✭


    Can anyone please clarify for me if the 80% Tax on selling a site has been passed as it seemsto be very hard to find on the net. Im just finding it very hard to believe.


Comments

  • #2
    pigeonbutler
    Registered Users, Registered Users 2 Posts: 666 ✭✭✭pigeonbutler


    Just to clarify, it's an 80% tax on any windfall gain arising from the rezoning of land. It's not the case that you will have to hand over 80% of the proceeds of your sale.

    Yes the provision has been enacted into law in respect of any disposals of land made after 30 October 2009.

    I was actually hoping to provide you with a link to a quick summary of the new rules but Revenue don't seem to have published anything. Quoting legislation to a layperson isn't exactly ideal, however to convince you that it has arrived here's the NAMA bill, which included the provision: http://www.nama.ie/Publications/2009/NAMABill.pdf

    It's on page 161 onwards. Hopefully though my first sentence will have clarified any concerns you might have. By way of example though,

    If I own a 1 acre site zoned for agricultural use (now worth say EUR 10,000) and that is rezoned to residential use (worth say EUR 100,000). If I subsequently sell that site for EUR 100,000 I will be subject to 80% tax on the windfall gain (i.e. the 90K uplift - a portion of the 5k base cost) I will be subject to normal 25% CGT on the difference between the 10,000 agricultural value and the remaining portion of the base cost.

    Hope this helps.


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