Building a second home in garden

Po' Boy

Registered User
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Hi all
Does anyone know the situation re capital gains tax on building a second home in your garden?
My mother has a really big garden and she's exploring planning permission at the moment, there's essentially enough space to build another house and still keep her own. But if she builds a second home and sells it immediately, let's say she made 300,000 on the house, how much of this would go in capital gains tax? Given the cost of labour and materials etc, i just want to find out if it would be worthwhile to her (she'd probably make substantially more than €300,000 - it wouldu be closer to €450K I think.)
 
The amount of CGT would be sales price - selling costs - building costs = gain less personal allowance of 1270 @ 20%.

The most cost effective way to do something like this is to build and move into the new house and sell existing which as was PPR is free from CGT.
 
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