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CGT: How to attribute sales costs (auctioneer & solictor) to Land/house

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  • 17-07-2020 10:40am
    #1
    Awkwardstroke
    Registered Users Posts: 94 ✭✭


    I am in the process of selling a house and 3 acres.
    while the house is my personal dwelling and exempt from CGT).

    the 3 acres of land (beside the house) have gained value since I bought the house and land and will therefore be liable to CGT.

    my question is can I attribute some of the Auctioneer/solicitor fees against the gain to help reduce my overall CGT liability on this land?

    (IE could this be proportional to their relative value)

    Any advice would be welcome.
    Tagged:


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    #2
    y0ssar1an22
    Registered Users Posts: 17,062 ✭✭✭✭y0ssar1an22


    if you are selling as 1 lot, or there will be 1 invoice from each of the solicitor/auctioneer/etc, you can apportion away.

    have a read of this:

    https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/cgt1-guide.pdf

    this is about the development land provisions, page 12.

    Where an individual disposes of his/her private residence and/or its gardens or grounds the principal residence relief is restricted if the property is development land. The relief is confined to what it would be if the property did not have development value.

    i think this is something you need to consider.


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    #3
    tanit
    Registered Users Posts: 325 ✭✭tanit


    Awkwardstroke wrote: »
    I am in the process of selling a house and 3 acres.
    while the house is my personal dwelling and exempt from CGT).

    the 3 acres of land (beside the house) have gained value since I bought the house and land and will therefore be liable to CGT.

    my question is can I attribute some of the Auctioneer/solicitor fees against the gain to help reduce my overall CGT liability on this land?

    (IE could this be proportional to their relative value)

    Any advice would be welcome.

    Under the PPR Relief you can include 1 acre of land around the house to be covered by the relief.

    https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/principal-private-residence-ppr-relief.aspx

    So check the amount of land you are selling and if it is around the house, you will only need to pay CGT on 2 acres of land and apportioned the expenses accordingly.

    I would recommend some formal tax advice with all the information regarding the status of the land you are selling to see how to best use the relief and all the tax implications.


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