CGT on sale of land added later to residence

peadar899 · Apprentice Joined: 14 Jun 2007 Posts: 2

I have had the same residence for quite some time now. Two years ago, I added some land. Recently I have started thinking about selling that land. I would benefit from getting some extra money. However, I would like to know how CGT works in my case, since the property was added later. If anyone could tell me, that would be great. Thanks in advance.

luigi · Apprentice Joined: 27 Jun 2005 Posts: 6

When it comes to CGT, or capital gains tax, it is usually applied to the income you get when selling your home. Moreover, it only applies for second property, not the one you live in. Your situation is different. You have added some land after obtaining the first house. Now, as it seems to me, in CGT tax, as you will certainly receive enough income from selling the land, only those years for which the land was yours will count as tax liable. There is no reason to think anything else on that matter. Best of luck.