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Garden Site

  • 04-01-2023 2:01pm
    Moderators, Sports Moderators Posts: 8,678 Mod ✭✭✭✭

    If you sell off a site in your garden how are the proceeds taxed? I am assuming (Sale price - some % of PPR) * CGT = Tax libailty

    If the house is mortgaged, I assume the banks consent is required?

    If you build a new house on the site and then sell it, I assume its all the the same?


  • Registered Users Posts: 1,056 ✭✭✭DubCount

    For a simple question, this is not straightforward. Firstly, PPR exemption only relates to a property and garden of up to 1 Acre. If the site has not previously been part of the garden (and is a separate piece of land) or if the garden is in excess of 1 Acre, PPR exemption may not apply at all. If the site was part of the garden, then the value needs to be split between the existing value of the land, and the development value of the land (The land is worth more as a site than a piece of garden). The development element is not covered by the PPR exemption. You may get some dispensation from Revenue if you are gifting the land to a child as opposed to selling to a developer.

    I guess this is a roundabout way of saying you probably need to get yourself an Accountant to deal with the Capital Gains Tax on this type of transaction, before you do anything.