CGT advice for individual

G

guinness

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I have a query re CGT on a the sale of a house that i had built.
In 2005 i purchased a small plot of land in cavan for 40k. I then built a house through direct labour and sold it in Jan 2007 for 317k.The following are the costs associated with the building of the house.
- builder 187k
- loan interest 19k
- solicitor 7k
- Architect 5k
- council fees 5k
- stamp duty 5k
- sundry 38k

My profit was approx 51k

Could someone please advise as to how my cgt should be calculated?

Many thanks in advance
 
Capital gain = 51k
less annual exemption 1,240 = 49760
taxable gain = 49760
tax at 20% = 9,952

This shold have been paid by 30th October 2007, so there may be interest and late payments penalties due.

Also, it is not 100% clear as to whether the interest on the loan is allowable. More details on the exact nature of the loan would be required.

It is probably worth getting professional advice from a tax consultant.
 
The interest on the loan is not allowable when computing your taxable gain.

Don't forget your CGT return is due for submission tomorrow.
 
many thanks for the help. i was under the impression that the liability was due at the same time as my income tax i.e 2007 income due by 31st oct 2008. would you advise including my details on my Form 11 tommorrow and then wait for the revenue to notify me of any penalties.
Also can i just declare the capital gain on my Form 11 or do i have to submit a seperate return?
 
Completing the CGT part of your Form 11 will fulfil your return requirements.

However, you should pay the tax as soon as possible as the clock is ticking on the interest.
 
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