CGT on house sale.

[onway]

My husband and a work colleague have just sold a house which they built.They are joint owners of the site and split the cost of the build between them. How do we calculate CGT on this??

 

[Joe1234]

Will the solicitor who is handling the sale do the CGT return for you? If not you should probably get an accountant to do the work.

 

[Graham_07]

Did they build with the specific intention of selling once built? As they were not connected as such ( husband and a work colleague ) does it look like a business arrangement which Revenue may view as a development in course of a once off trade and as such Income and not Capital Gains Tax may come into the picture ( not to mention VAT ) A consult with an accountant / tax consultant would be definitely advisable.

 

[Macer]

Graham is correct, profit from this transaction would be subject to income tax @ the marginal rate of the partners involved.
Could consider renting for a period and then selling, this would more than likely make the transaction a capital gain, would also avoid the need to register for VAT.