Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Help with Capital Gains Tax

  • 12-07-2010 1:32pm
    #1
    Closed Accounts Posts: 2


    Ok a bit unsure about Capital Gains Tax, I know it's at a rate 0f 25% but I know that there's relief on serveral fronts - inflation and expenses can be taken into account... Just wondering can someone help me out...

    My father wants to sell a site he was self-employed and is trying to retire but for financial reasons he's unable to do so yet until he sells a site,he owes €180K of a mortgage still.

    The site was bought for £500 back in 1975, it's just over half an acre in a zone residential site. I'm advised it could be worth €200K now. So for argument sake we'll say it could be sold for that (in this climate no so sure!!) but how will the Capital Gains Tax be worked out?
    If he pays 25% of the 200K to CGT, he's only left with €150K which leaves him €30K short on his mortgage...

    Is he intitled to some inflation relief? If so does anyone know how it is calculated? What would he end up having to pay in CGT. Any advice appreciated as I know this financial worry is really stressfull on him.


Comments

  • Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    He is entitled to indexation but as the base cost is so low it will not make much difference. http://www.revenue.ie/en/tax/cgt/leaflets/cgtmult.pdf
    £500 x 7.538 = €4,785

    So Proceeds 200k - 4785k =195000 - 1270 x 25% approx €48,500 in CGT.
    What did he do with the site. Was it part of a farm. Retirement relief potential.


  • Closed Accounts Posts: 2 cla123


    Thanks for that, he's an electrician so unfortunately don't think retirement relief is an option. Thanks for your reply.


  • Registered Users, Registered Users 2 Posts: 26 derand


    What are the circumstances around your dad's retirement and what does the €180k mortgage relate to? There might be a planning opportunity here...send me a pm to discuss offline.


  • Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    Read the charter- locked.


This discussion has been closed.
Advertisement