CGT on holiday home sale

P

penang

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Hi

I recently sold a holiday home that I built in 1998. The cost of building was £78000 including the land. The sale price is €105,000. Solicitors and auctioneers fees came to €4000. I am married.

so my CGT calculation would be (or am I missing something)

Buying price €99000
Selling price €105000
Liable Gain €6000
Less selling
exp of 4k €2000


And taking into account the CGT allowances for a married couple it looks like i don't owe any CGT - is this correct?

As always many thanks to AAM.

Penang
 
Last edited:
calculate the buying price in €: £78,000 /.787564 = €99,039 Then you have indexation
Property bought in the tax year 99/2000 and sold after 2004 have an indexation factor of 1.193
So indexed cost is : €118,154

Which is less than the sales proceeds, so you have no CGT liability, assuming it was a sale at arm's length.

If I remember correctly, you can't use indexation to create a loss, so you don't have a loss forward for CGT purposes.
 
It's not relevant here but the purchase costs would also be taken into account and indexed. Ditto for any capital improvements.
 
Many thanks Folks - sold the property to a buyer unknown to me. Didn't know about the indexation so I guess that takes care of any liability.

Really appreciate the prompt and knowledgeable answers

Penang
 
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