The National Asset Management agency has been set up to manage non-performing property loans. As part of the set-up the government aims to prevent windfall gains from re-zoning land.
It has imposed an 80% rate of Capital Gains Tax on certain land disposals. This has caused some confusion as many taxpayers think that it relates to all land disosals are caught.
The disposals caught by the tax are
- Where the land has been rezoned.
- Getting planning permission is not rezoning.
- The designation of the land must change from
non-development to development
from on type of development to another e.g from commercial to residential
Finance Act 2010 introduced a provision that planning perissions involving a material contravention of the Local Development Plan are also caught by the tax
This very brief outline shows how complex this issue is. You should always seek professional taxadvice.