I have just built my dream home or so I thought and was due to move in in the next two weeks. Circumstances have changed and I will have to sell this house now. With the way the property market has gone it may take a while to sell this house. I may be married before I can sell the house. If this happens will I be subject to pay tax on the property.
If it was never your actual PPR (Principal Private Residence) or it was and you don't sell it within 12 months of vacating it then CGT on some portion of any resale gain could be an issue. You may need to get professional advice.
This isn't true. Where a person builds a house with the intention of selling it immediately to make a profit this is a "trade" for tax purposes and subject to income tax.
However, in the OP's case, it wasn't his intention to sell immediately and so, if a profit is made, it will be subject to CGT.
So that must be why builders don't pay tax. I thought it was something to do with brown envelops, tents in Galway and the odd dig out.
Nige: That Revenue will see is A: The house being build, B: The house being sold. C: The house not being a PPR for a year. A + B + C = You are building for profit, so we will take our share of income tax from it.
Towger, if the Revenue query his tax return he just has to show that it was not his intention to sell on without living there. Provided he can do this there should be no problem.
This isn't true. Where a person builds a house with the intention of selling it immediately to make a profit this is a "trade" for tax purposes and subject to income tax.