Your property questions answered.

Can I delay paying my Capital Gains Tax?

I sold a small investment property in 2007. The sale was delayed but finally went through in mid-November. I know I will be liable for Capital Gains Tax as I made a considerable profit. Can I pay the tax at the same time as I am filing my tax which will be later this year? I am self-employed.

• As your CGT (Capital Gains Tax) liability arises out of a sale that took place between October 1st and December 31st you must pay the tax before January 31st - so you have just over a week to get your act together. The tax year is divided into two periods for CGT payment purposes: the initial period runs from January 1st to September 30th, both inclusive, and the later period runs from October 1st to December 31st, inclusive. These dates apply whether you are self-employed or a PAYE worker. CGT is a self-assessment tax which means that you must calculate and pay your tax and file a return of gains and losses without being requested to do so by Revenue. Look at www.revenue.ie for information on how to assess and pay your tax or seek professional advice.

My house is worth less than I paid for it

My partner and I bought a house (a three-bed semi) in a new estate 14 months ago. The second phase of the development is now on the market and the prices are 10 per cent lower than what we paid. We have a 100 per cent mortgage. It seems to me that we are now in negative equity (are we?, and what are the implications?) through no fault of our own. Do we have any comeback against the builder?

• You bought your house at the market rate at that time. If the market had risen, you would now be looking at a different situation and feeling pretty pleased with yourself. Unfortunately for you the opposite has happened and the builder is pricing his houses to reflect that, so no, you have no comeback against the builder. A 100 per cent mortgage is always a risky proposition which is why the new market conditions mean that such a loan is harder to come by.

As to negative equity, this really will only come into play if you either have to sell quickly or if you need to release equity from your house.

If you had to sell your house tomorrow it is highly likely that the amount you would get for it would not clear your 100 per cent mortgage and you would be left finding the money to pay your lender back the difference. So, yes, you are experiencing negative equity.

Similarly the option of releasing equity - a popular way in recent years for homeowners to get their hands on a lump sum - is not open to you as you have no equity in the house; you owe more than the house is worth. But you probably bought the house with a view to making it your home and not as an asset that you intended to sell quickly. If you don't want, or have to, sell then negative equity doesn't come into it so hold tight.

Send your queries to Property Questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.