Selling property/land - will the proceeds be taxed?

ongarboy

Hi all,
A friend of mine bought (via a cash purchase) a derelict cottage with 6 acres down the country and had plans to renovate the cottage and move in. It would have been his first principal and primary residence (he currently (and always has) lives in his parents home).

He has run into a number of planning and other setbacks and is considering selling the property and focus more on purchasing a property in more walk in condition. He was asking whether he would be liable to tax on the proceeds he would make from the selling of the property. He bought in 2010 so is unlikely to sell at a higher price that what he purchased. But would he be liable to tax on either the sale proceeds and/or any surplus he'd make if it was intended as his primary residence and not an investment? (and considering he purchased based on cash savings from income net of tax earned over the years)

Any advice appreciated.

riclad

SEE here
http://www.revenue.ie/en/tax/cgt/index.html
if it was used as his principal residence hes,not liable,
cgt is tax on gains, say he paid,80k,, sells for 79 k theres no profit to be taxed.
see
http://www.revenue.ie/en/tax/cgt/chargeable-assets.html
see
http://www.revenue.ie/en/tax/cgt/leaflets/index.html
i presume he did not rent it out ,it was empty or he lived there.

Victor

The buyer would need to pay stamp duty.

If your friend makes a capital gain, he may need to pay CGT. If he makes a loss, he might be able to off-set this against future capital gains.

ongarboy wrote: »

if it was intended as his primary residence

I'm not sure that intention counts in this situation, however it may be useful to speak to a solicitor or accountant with experience in this area.