CGT on rented property with site

Hi everyone,
Just wondering if anyone can advise as to roughly how much I will have to pay CGT on the following.
Rental property bouught for €150K in 1998 and lived in till rented in July 2004 to present. Now worth €400 but also has site for house at the side which we think is worth about €200K with FPP. Planning to sell the lot in a few months as we want to live nearly mortgage free on own home property. How much will we have to pay out do you think???
- ball park figure would be good just so I can see how we will do.
Thanks everyone, fantastic site just found it last night while browsing!!

Muffin

Forgot to say that when property was first rented out the value of the house was about 300K in 2004 but site would probably have not had any market value as there was no Planning permission with it
Thanks to anyone who can help!

CGT would be calc along the following lines


Selling price of House ..............400
Selling price of Land.................200
Sub Total ..............................600

Deduct Legal & Auctioneers and planning Exps
say ........................................20

Total .....................................580

Deduct
Purchase Price ..........150
Plus Legal Costs
*

Multiplier 1.212 ........................181.8

.............................................418.2

Assessable to CGT - period rented for say 36 months (12 months may be exempt) .................24/108.........93

20% Tax ..................................18.6

* You can also deduct any improvements extensions you added to the property and appply the necessary multiplier.

The value of the site in 2004 is immaterial

The above is along the right lines but PPR relief is unlikely to apply to development premium on the value of the site. I would be surprised if the eventual CGT exposure is as low as €18k. Professional advice is the only way of determining the position with any degree of certainty.

Wow 18K sounds so much better than I had figured.
I had just presumed it was as simple at 600-150 purchase price=450 ,
take away some legal fees etc of maybe 4000K and then would be CGT'd 20% of the remaining 449k profit which would be astonomical figure. I really thought you lost 20% of the profit you had built up.
Even if there is something wrong with the calcs im still a much happier bunny than this morning!!!

Thanks both of you, I really appreciate you helping on this, lots of good luck to you both!!!

I really thought you lost 20% of the profit you had built up

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If it was an investment property. you would have to pay 20% on the gain. As it was your PPR for 6 of the nine years you owned the property. you only have to pay CGT on the period it was rented less perhaps 12 months.

ubiguitous if correct, the Property and site would have to be split and a value placed on the land you want to develop and the value of the house when purchased. I don't think the development land would be eligible to PPR relief but would I think be eligible for multiplier relief.

I would calc the CGT as somewhere in excess of 45K

You really need to get independant tax advise before progressing.

Thank you so much to everone who has helped with my query. I am feeling a bit better than I have done for some time about this as no one has come near the figures I was thinking which are well over 100K in CGT which was quite a nightmare, Obviously you can see I am not tax oriented at all, never was any good at maths or commerce on school!

Will contact independent person about this anyway and let you know how I get on and what the final figure is!

Thanks
Muffinb

Hello again everyone,

Anyone else shed an light on the figure I will have to pay out in CGT??
Friend of Husband who knows a little nbut not a lot reckons its more like 86k!! Not sure how he got that, was over a pint at the time with a beer mat and pen!!

Anymore taxation fiends??
Can anyone recommend tax person in Dun Laoghaire area that I could settle the confusion with??
Regards
Muffin