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

How much tax on my compensation?

  • 26-01-2019 10:04pm
    #1
    Hannaho
    Registered Users, Registered Users 2 Posts: 733 ✭✭✭


    It seems I am likley to get just over 100k for compoensation for damage to my house from renovation project gone wrong. I wasn't aware i had to pay tax on this - but it seems that I do - and I can't seem to find out how much CGT it will be from Revenue. It was compensation for having to do 75k of remedial work on my house, along with stress, devaluation etc. The remedial work was done 2 years ago. Does anyone know how much CGT it will be on 105K. It really hardly seems worth going through all the sress of getting a payout!


Comments

  • #2
    CiarraiAbu2
    Registered Users, Registered Users 2 Posts: 584 ✭✭✭CiarraiAbu2


    Hannaho wrote: »
    It seems I am likley to get just over 100k for compoensation for damage to my house from renovation project gone wrong. I wasn't aware i had to pay tax on this - but it seems that I do - and I can't seem to find out how much CGT it will be from Revenue. It was compensation for having to do 75k of remedial work on my house, along with stress, devaluation etc. The remedial work was done 2 years ago. Does anyone know how much CGT it will be on 105K. It really hardly seems worth going through all the sress of getting a payout!

    There is no tax on compensation.


  • #3
    Hannaho
    Registered Users, Registered Users 2 Posts: 733 ✭✭✭Hannaho


    Thanks for you reply. My work colleague told me she paid tax on compensation she got for a house build that went wrong - she said the compensation was treated as capital. Maybe she's goten it wrong. I certainly hope so!!


  • #4
    CiarraiAbu2
    Registered Users, Registered Users 2 Posts: 584 ✭✭✭CiarraiAbu2


    Hannaho wrote: »
    Thanks for you reply. My work colleague told me she paid tax on compensation she got for a house build that went wrong - she said the compensation was treated as capital. Maybe she's goten it wrong. I certainly hope so!!

    There can be for capital loss, but since 75k was for repairs, and if the balance was for personal injury (stress etc) it should all be tax free.


  • #5
    Hannaho
    Registered Users, Registered Users 2 Posts: 733 ✭✭✭Hannaho


    Thanks, CiarraAbut2, yes, it was 75k for remdial work, including engineers fees, QS fees etc. 25k was for stress for myself and my children, 5k was for a valuation report for diminutition in value, making it 105k. However, the valuer's report is not in, and it seems like there might be some reduction in value of the hosue because of what happened, so could compensaiton could be over 105k. Glad to know I don't pay compensation on it - it was so stressful just getting it! Thanks again


  • #6
    Dakotabigone
    Site Banned Posts: 512 ✭✭✭Dakotabigone


    No tax to be paid op, based on what you have said. Glad you got compensated, too many cowboy builders still on the loose.


  • Advertisement
  • #7
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    The only time i've seen tax applied to compensation was where payment was made for loss of earnings in unfair dismissal cases


  • #8
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,633 ✭✭✭✭Marcusm


    Hannaho wrote: »
    It seems I am likley to get just over 100k for compoensation for damage to my house from renovation project gone wrong. I wasn't aware i had to pay tax on this - but it seems that I do - and I can't seem to find out how much CGT it will be from Revenue. It was compensation for having to do 75k of remedial work on my house, along with stress, devaluation etc. The remedial work was done 2 years ago. Does anyone know how much CGT it will be on 105K. It really hardly seems worth going through all the sress of getting a payout!

    If you were advised on the compensation claim you should consult that solicitor as to whether they can give you tax advice. There is a distinction between compensation for personal injury (perhaps the stresscelement) and compensation for damage to property. One of these is not taxable and the other is treated as a capital sum derived from the underlying asset and a part disposal calculation is required.


  • #9
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    Marcusm wrote: »
    If you were advised on the compensation claim you should consult that solicitor as to whether they can give you tax advice. There is a distinction between compensation for personal injury (perhaps the stresscelement) and compensation for damage to property. One of these is not taxable and the other is treated as a capital sum derived from the underlying asset and a part disposal calculation is required.

    But if the capital sum is derived from an exempt asset, as for example a principal private residence, then the exemption will still apply.


Advertisement