CGT on sale of Land

T

tosullivan

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A relative of mine has been offered €2m for the sale of their land.

Is CGT applicable to this deal? The land has been in the family for years and the offer is way above the market rate per acre
 
If the land was acquired before 6/4/74 the land has a deemed value as valued by an estate agent.
The multipler is then applied to this figure See here pg 37
This figure is then subtracted from 2M less selling expenses, you then subtract 1,270. This is the amount liable to CGT is 20%
 
Given the magnitude of the sale amount appropriate professional advice would be necessary. The potential CGT on this transaction is much too high to rely on advice from a forum such as this.
 
The current use value will also have to be deducted from the development value to make the cgt a bit lower, but get advice from a commercial agent or accountant to try an reduce your hit as much as possible.
 
Graham_07 said:
Given the magnitude of the sale amount appropriate professional advice would be necessary. The potential CGT on this transaction is much too high to rely on advice from a forum such as this.
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this is being done, thanks

the land is in the family a lot longer than before 1974
 
Anyone who would use an estate agent or auctioneer as a source for tax advice would imho need their head examined
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A truly educated reply. Members of the IAVI should have detailed knowledge of CGT and commercial agents with experience will have dealt with such areas as the OP's circumstance.
 
MrMan said:
Members of the IAVI should have detailed knowledge of CGT
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Really? From where? The education & CPD pages of the IAVI website make no mention of tax training.




MrMan said:
and commercial agents with experience will have dealt with such areas as the OP's circumstance.
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Yes, but hardly in the specific area of providing specialist tax advice on transactions.
 
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