Land Transfer in the Republic

[FL/MAYO]

What are the tax consequences when a mother transfers a piece of land to a daughter (in the Republic)? My mother in law wants to transfer ownership of a site to my wife but is worried that there might be big tax bill due upon transfer.   

[rossie mad]

Not fully sure but as far as i am aware there is very little tax if its transterred from parent to child.

Not exactly sure so dont quote me.

There is other costs including solictors fees.

[Gnevin]

Pretty sure capital gains would have to be paid

[Zapatista]

It would ba a tough call on when to do it. THe value could inrease or fall in a short space of time before or after NAMA.

[bcarrier]

Unlikley to be CGT if a gift and probably below gift tax thresholds 

http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

What you might need to be wary of is the new greens tax on change of planning ...

I dont believe details are available yet but might be:

Value of say 0.5 acre site as farmland say 5k
value of 0.5 acre site as housing site say 55K

Rise in value due to planning 50K

Tax @ 80%  40K !

[Shamrock Shore]

Unlikely to trigger CAT (capital acquisitions tax) as threshold for gifts/inheritances from parents to child is over 500,000 aggregate over lifetime

Stamp duty is 50% of normal rate. Depends on the value of the land. It needs to be properly valued by a qualified person.

[muppet]

Pretty sure capital gains would have to be paid

By whom?

The parent?

Capital gains could only apply to the child on any increase in the value of the land after the transfer which is not the issue here.

[FL/MAYO]

The site will be used for the sole purpose of building our primary residence.

[magickingdom]

as stated above unless the site is valued at above the threshold (of around 500k (thats a lifetime threshold - so any previous gifts must be inc)) there will be no cgt. you will have to set a value for the t/f tho but if the site is to be used for your primary residence then this wont really matter if in the future you decide to sell (as no tax on primary residence). if you were not using it for your primary residence it may be advisable to set the value on the high side to avoid future cgt bills if you sell it.... if in doubt see an accountant, a few bob well spent!

[FL/MAYO]

Thanks lads for the information, the mother in law was in a bit of a panic last night. I spoke to an accountant today she gave me similar advice. As long as the land has belonged to the family for more than 10 years and the owner is over 55 years old it should not be a problem. The fact that we live overseas might be a problem but the accountant is looking into weather that will be a problem or not

[never kickt a ball]

Thanks lads for the information, the mother in law was in a bit of a panic last night. I spoke to an accountant today she gave me similar advice. As long as the land has belonged to the family for more than 10 years and the owner is over 55 years old it should not be a problem. The fact that we live overseas might be a problem but the accountant is looking into weather that will be a problem or not

There's no doubt when you do move that will give you a problem!

[FL/MAYO]

Thanks lads for the information, the mother in law was in a bit of a panic last night. I spoke to an accountant today she gave me similar advice. As long as the land has belonged to the family for more than 10 years and the owner is over 55 years old it should not be a problem. The fact that we live overseas might be a problem but the accountant is looking into weather that will be a problem or not

There's no doubt when you do move that will give you a problem!

To true, still in the 90's here today but not to worry a cold front coming in tonight, it will only be in the 80's tomorrow