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 all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

Capital Gains Tax on a partial land sale

Options
  • 09-04-2019 10:43pm
    #1
    wicklowdub
    Registered Users Posts: 847 ✭✭✭


    Hi

    Wondering if anyone can help with this query.

    We are looking a purchasing a house (this would be our primary private residence)which will be part funded by a loan from a family member. if we were to subsequently sell a part of the site (to build a house on) to the family member for the same value of the loan are we likely to be liable for CGT?

    Appreciate any feedback.
    Tagged:


Comments

  • Options
    #2
    Ciaran
    Registered Users Posts: 905 ✭✭✭Ciaran


    It's likely that you would be liable to CGT. See example 10 on pages 21 and 22 of this: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-07-03.pdf

    You'd have to use the market value of the part of the site for the calculation instead of the sale price in the linked eample.


  • Options
    #3
    Calahonda52
    Registered Users Posts: 12,193 ✭✭✭✭Calahonda52


    wicklowdub wrote: »
    Hi

    Wondering if anyone can help with this query.

    We are looking a purchasing a house (this would be our primary private residence)which will be part funded by a loan from a family member. if we were to subsequently sell a part of the site (to build a house on) to the family member for the same value of the loan are we likely to be liable for CGT?

    Appreciate any feedback.

    Is a bank is part funding this?

    “I can’t pay my staff or mortgage with instagram likes”.



  • Options
    #4
    wicklowdub
    Registered Users Posts: 847 ✭✭✭wicklowdub


    Calahonda52 wrote: »
    Is a bank is part funding this?

    Yes but less than a 1/3 of the total transaction, their interest in it wouldnt be reduced by the sale of part of the land, there'd be more than enough equity left.


  • Options
    #5
    Calahonda52
    Registered Users Posts: 12,193 ✭✭✭✭Calahonda52


    wicklowdub wrote: »
    Yes but less than a 1/3 of the total transaction, their interest in it wouldnt be reduced by the sale of part of the land, there'd be more than enough equity left.

    Best split the site into two now and have two legal titles, else bank may not release its charge to allow you do it later

    “I can’t pay my staff or mortgage with instagram likes”.



Advertisement