CGT on new property

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Unregistered

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Hi all

Not sure if this question is in the area....maybe someone can put me right.

My wife and me are getting planning permission to build a new house on our corner site in castleknock. Question I have is, when it's built, and I intend to sell it, what CGT am I liable for.

I know it's 20% if it's my primary residence I'm selling (I think) but not sure about above-scenario. Any help is much appreciated.

Thanks!

Larrymo
 
Unregistered said:
My wife and me are getting planning permission to build a new house on our corner site in castleknock. Question I have is, when it's built, and I intend to sell it, what CGT am I liable for.

20% on any gain arising from the sale of a property that was never one's PPR (Principal Private Residence).

Unregistered said:
I know it's 20% if it's my primary residence I'm selling

This is incorrect. One's PPR is exempt from CGT if it was never rented other than under the rent a room scheme. If it was otherwise rented then a portion of the overall gain related to the length of time that it was rented is assessable for CGT.

In cases such as yours (building a new house in a side/garden site adjacent to one's existing PPR) I know of some people moved into the new house and sold the old one in order cash in on a CGT free capital gain on the old house. This may not always be an option though.
 
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