Capital Gains Tax on a Site in Ireland — When It Applies, the Exemptions, and the Trap
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CGT on a site in Ireland: 33% on the gain. Exemptions for principal private residence (the site becomes part of the PPR once you build and live in the house), inherited land (in some cases — depends on the inheritance), and land bought for self-build (in some cases). The site is a disposal if you sell it without building. If you build and live in the house, the site becomes part of the principal private residence and is exempt. Talk to your accountant before you buy a site. The CGT implications depend on whether the site is for your own use or for investment. Most Irish self-builders who build and live in the house have no CGT to pay on the site.
TL;DR
CGT on a site in Ireland: 33% on the gain. Exemptions for principal private residence, inherited land (in some cases), and land bought for self-build (in some cases).
The site is a disposal if you sell it without building. If you build and live in the house, the site becomes part of the principal private residence and is exempt.
Talk to your accountant before you buy a site. The CGT implications depend on whether the site is for your own use or for investment.
When this matters most
You're considering buying a site and need to know the CGT implications.
When this doesn't apply
You've built on the site and are living in the house.
Frequently asked questions
Do I pay CGT on a self-build site?
Only if you sell the site without building, or if the site is an investment (not your principal private residence). If you build and live in the house, the site is part of the PPR and is exempt.
What is the principal private residence exemption?
The site becomes part of your principal private residence (PPR) once you build and live in the house. PPR is exempt from CGT for the period of occupation.
What if I inherit a site?
Inheritance of land is generally exempt from inheritance tax if it's a principal inheritance (most cases). But CGT may apply if you sell without building. Talk to your accountant.
Sources
Revenue Commissioners, CGT on residential property. https://www.revenue.ie/
Frequently asked questions
Do I pay CGT on a self-build site?
Only if you sell the site without building, or if the site is an investment (not your principal private residence). If you build and live in the house, the site is part of the PPR and is exempt.
What is the principal private residence exemption?
The site becomes part of your principal private residence (PPR) once you build and live in the house. PPR is exempt from CGT for the period of occupation.
What if I inherit a site?
Inheritance of land is generally exempt from inheritance tax if it's a principal inheritance (most cases). But CGT may apply if you sell without building. Talk to your accountant.