can you SWAP a site for something other than money

D

donee

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i hope this is within the boundaries of this forum.
we have a site that obviously we cant sell as people either have no money or access to lending. having said that we stopped trying to sell it about 2 years ago. there's no mortgage or any other claim on it
is it possible to SWAP it legally for something other than money? in otherwards does it have to be 'sold' as such
 
I think you can do this but the transaction(s?) will still probably be assessable for CGT and/or CAT based on a fair market assessment of its value if it was a normal monetary transaction.
 
donee said:
i hope this is within the boundaries of this forum.
we have a site that obviously we cant sell as people either have no money or access to lending. having said that we stopped trying to sell it about 2 years ago. there's no mortgage or any other claim on it
is it possible to SWAP it legally for something other than money? in otherwards does it have to be 'sold' as such
Click to expand...

Of course you can swap property! In a normal sale all you are doing is swapping it for money, which at the end of the day is no different than swapping it for something else that has a monetary value...

As for the tax implications, if you aren't in any way connected with the person you swapping with, then all that is relevant is the value of whatever you swap the site for.

If you are "connected" to the other party then you are deemed to have received the market value of the site (i.e. you'd need to have it valued).
 
thanks for the replies we would be 'selling' or 'swapping' for a hell of a lot less than we paid for it I'm not sure if any cgt would be due on it and to get the 'market value' on any property, i suppose would be like pulling a rabbit from a hat.
Again hanks for the advice
Cheers
 
mandelbrot said:
As for the tax implications, if you aren't in any way connected with the person you swapping with, then all that is relevant is the value of whatever you swap the site for.
Click to expand...
OK - I thought that if I swapped a property worth €1M for another worth €500K then the taxman could have things to say about this transaction? If I am wrong then I stand corrected...
 
ClubMan said:
OK - I thought that if I swapped a property worth €1M for another worth €500K then the taxman could have things to say about this transaction? If I am wrong then I stand corrected...
Click to expand...

They could have something to say if it was anything other than a bargain at arm's length between unconnected persons, or if it was a transaction whose sole / main purpose was the avoidance of tax.
 
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