Hi there,
not trying to replace tax advise from a professional in this post, would just like to get an idea of how the following is calculated. I understand all about market prices at acquisitions on buying a house, indexing, ppr exemptions for periods of residence but am uncertain about how CGT is calculated when you build the house yourself.
For example
Got a site from parent 2002 - market value 20k
Got full planning in 2006
Built house in 2006 for approx 400k all in
Market value by real estate agent for bank was 1,000k for completed house (they were the good times alright!)
Value now 600k
So what is my acquisition value for CGT purposes , 420k or 1,000k.
Although it cost me 420k to build it I have actually made a market loss of 580k since the house was completed.
Any insights would be great.
p.s. don't worry I will be confirming everything with a professional later.
not trying to replace tax advise from a professional in this post, would just like to get an idea of how the following is calculated. I understand all about market prices at acquisitions on buying a house, indexing, ppr exemptions for periods of residence but am uncertain about how CGT is calculated when you build the house yourself.
For example
Got a site from parent 2002 - market value 20k
Got full planning in 2006
Built house in 2006 for approx 400k all in
Market value by real estate agent for bank was 1,000k for completed house (they were the good times alright!)
Value now 600k
So what is my acquisition value for CGT purposes , 420k or 1,000k.
Although it cost me 420k to build it I have actually made a market loss of 580k since the house was completed.
Any insights would be great.
p.s. don't worry I will be confirming everything with a professional later.