Capital gains tax on sale of site

N

nimart123

Registered User
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7
Can anyone advise me on the following:

We are trying to sell a site -agricultural land .
Do we pay capital gains tax at 20% on the profit of the land-- ie. difference between what we sell for and what we paid for 7 years ago or is it just 20% on the sale price?

Also , will this be our full and final tax liability on the sale of the site or do we also have to pay income tax on the profit separate from the capital gains tax?
Please help! Someone has made a reasonable offer and we just want to have our figures correct and not be caught with a high tax bill..
Thank you
 
You pay CGT as follows:
Sale price less selling expenses (auctioneers & estate agents fees legal)
less
purchase price plus purchase exps (auctioneers estate agents fees etc incl stamp duty)

Also, this is the full and final tax liability.
If you let the land any profit from leasing it is subject to income tax at your relevant rate.
 
Is the land agricultural land without planning for residential development? Ironic to mention residential development I know but you can get 20% income tax under Section 644A Taxes Consolidation Act 1997 if it has. Perhaps you had higher costs in getting planning as these would qualify as tax deduction under IT than CGT.

don't forget to index the base cost under CGT to 31 December 2003.

Have you been using the land as part of a farm business and what age are ye? Can ye claim retirement relief?

nimart123 said:
Can anyone advise me on the following:

We are trying to sell a site -agricultural land .
Do we pay capital gains tax at 20% on the profit of the land-- ie. difference between what we sell for and what we paid for 7 years ago or is it just 20% on the sale price?

Also , will this be our full and final tax liability on the sale of the site or do we also have to pay income tax on the profit separate from the capital gains tax?
Please help! Someone has made a reasonable offer and we just want to have our figures correct and not be caught with a high tax bill..
Thank you
Click to expand...
 
Thanks for the replys.

The land is agricultural - we tried in vain to get planning a few times but failed so we dont think it has development potential.

The land is in 3 names- father, mother & son.
Not farmers- just bought a few years ago -but did nothing with it..tried to get planning-that was it.
Age of father is 56-- but does he not have to be farming the land to get the retirement relief from capital gains tax?

Thanks for your help.
 
On your last question yes you do but you never said whether you were or not in your original post so I had to raise it as a possible. In a face to face meeting this fact would emerge quite quickly. Hence the reason why these boards are not good for relying on.


nimart123 said:
Thanks for the replys.

The land is agricultural - we tried in vain to get planning a few times but failed so we dont think it has development potential.

The land is in 3 names- father, mother & son.
Not farmers- just bought a few years ago -but did nothing with it..tried to get planning-that was it.
Age of father is 56-- but does he not have to be farming the land to get the retirement relief from capital gains tax?

Thanks for your help.
Click to expand...
 
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