How to value the site attached to an existing corner house.

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Branz

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How to value the site attached to an existing corner house.
Background.

Bought a semi-d house corner house 20+ years ago for euro 25,000.

House was never a principal private residence.


Last year I divided the site and built a detached dwelling on the corner site.
Construction costs of c 250k

Houses in the estate were valued at about 430k at the time, now about 390/400k.

Now selling the new house at c 420k

2 questions.

How do I value the site for cost purposes in the calculation of the total purchase price for the Capital Gains tax calculation?

What effect does dividing the site have on the cost of the original house for CGT purposes?

Thanks.
 
1. CGT is charged on the gain e.g. selling price less building costs less selling costs by 20%

2. CGT applies, on the gain over what you originally paid for the house . the sale of the new house is irrelevent thats just an extra gain on which you have to pay tax , but you may be able to use indexation if you bought before 2001.

Selling both together will not affect the indexation
 
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