Selling below market value

Grawns

If person A were to sell person B a small site for €1000 - they have a professional relationship so suppose the agreement was to make up the full payment through free work. Wouldn't this be a big no no with the revenue? Or can you sell for whatever you like?

Mr. Incognito

If you are connected persons Revenue will apply a market value to any such sale.

If you are not connected in theory you can sell if for whatever price you like but you will get hammered on CGT down the line when you sell it on.

There are exemptions depending on the relationship also.

That's all hypothetical of course.

namenotavailablE

In general, where the 'consideration received' (basically sales value) for an asset is less than the fair market value, the Revenue will assess the seller on the 'deemed gain' (i.e the gain which would arise using the market value).

Source: See paragraph 2 on page 10 of this CGT guide

beeftotheheels

You should ask yourself what tax heads you are considering - CGT and????

For CGT MV override rules apply where the parties have a connection per the TCA. Although does the consideration have to be cash? If I agree to sell you 1 sq meter of my garden in return for which you agree to provide me with €1,000 worth of spuds over the next year have I made you a gift of the land, or have I sold it to you for €1,000 (to be paid in spuds, subject to Marren v Ingles)?

When dealing with the profits assessable under DI or DII as appropriate do you only deal with cash profits/ cash payments deductions??? Think about this also. Would B want a deduction for fees?

How do CGT and income tax interact? Which one overrides the other?

Have you thought about CAT?

Have you thought about stamp duty?

VAT?