Inheritance and CGT

L

luasdublin

Guest
Hi,

I inherited a house and a small adjacent field from a aunt in the early 1980's, which I paid inheritance tax on at the time. I currently am thinking about selling the adjacent field to a developer. Could someone tell me if I am liable for CGT taking into concideration that a) I received the inheritance nearly 30 years ago and a) it has been part of my principle residence since then?

Many thanks
 
I think that you can include a certain amount of that land as part of your PPR (although it is a while since I looked at this) I think it may be an acre.
But I think you can only claim Principal private residence relief where you sell the house and land together. So I think you will be liable to CGT on any gain made on the land since you acquired it.

See link below for more on CGT - this is a Revenue leaflet. You should probably talk to a tax consultant to confirm any tax payable.


http://www.revenue.ie/leaflets/cgt1.pdf
 
You will be liable to CGT on the disposal of the land as it is classed as a disposal of development land.

Your CGT as follows :

Consideration (sale proceeds)
Less: cost incurred on sale)

Less: the current use value (ie. the value of the land if no development could be carried out) at the date of aquisition (inheritance) this will be indexed at the appropriate rate, (based on year of aquisition).

Less: Annual Exepmtion.

CGT @ 20%

Hope this helps
 
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