CGT on new build

[sammmeee]

Just wondering when it is considered 1 year to get the 50% cgt rate when you do a new build..

Is it from keys handover or from when the contract is signed

 

[coastymike]

First question to ask before the 50% cgt discounr question is whether cgt applies. For many new builds cgt doesnt apply and revenue provision apply. In those cases no cgt discount. Messy and complex area which your accountant should be well versed in.

 

[Paul@PFI]

This is a major area of mistake when it comes to DIY tax solutions. Sometimes its the date of settlement and sometimes its the date you contract to buy it. For a new build it can even be the date construction commences.

If its a house and land then there may be two CGT assets. If you own the land for two years and contract a builder and he completes it and its promptly then there may be no discount on part of the sale. And an apportionment issue. Lots of factors.

This is an area where personal advice counts.