dirt on a lump sum

L

lisaliebe

Guest
Hello

We just accepted an offer on our house last week and once contracts are signed, keys handed over, solictor, mortgage and estate agents all paid off we will be left with a considerable amount of cash. 70k to be exact.

This is earmarked for a site which we are currently in the process of applying planning permission for. This process will take up to 4 months and in the meantime we are going to leave the money in a savings account of irelands largest building society. The savings account doesnt yield high interest and we can withdraw at a moments notice.

What we are wondering is while this money is in this account, could we be liable for any government tax? That would be a real sting as we already be paying stamp duty on the site when the sale goes through.

Any advice greatly appreciated.
 
If you earn any interest on the lump sum then DIRT (20%) will be automatically deducted from the interest. Otherwise, assuming that this was the sale of a PPR (Principal Private Residence) that was never rented out and not an investment property then there should be no other tax liabilities. Your solicitor should be able to reassure you on this point.
 
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