# Capital gains tax confusion.



## Anthony Bro (16 Apr 2007)

When does c.g.t apply ?.If for example,someone offered to sell you a piece of their land to build on,would they then be obliged to pay it


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## ClubMan (16 Apr 2007)

_CGT _is relevant when one disposes of a capital asset (e.g. property, land, shares). If somebody sells a piece of land then in all likelyhood the sale will be assessable for _CGT _payable by the seller. In summary _CGT _is 20% on the disposal price (or market value if the disposal is at a discount) less the acquisition price (indexed for inflation up to 2003 (?) if applicable) less allowable expenses less one's annual CGT exemption of €1,270 if applicable. There may also be other tax implications (e.g. _SD _on the purchase payable by the buyer). If in doubt get independent, professional advice.


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