Transfering ownership of a site & Inland Revenue

[take_yer_points]

Slightly off topic,  but when you sell a house in the north do you pay any taxes or anything on the profit made on the property since it was purchased?

[Over the Bar]

Slightly off topic,  but when you sell a house in the north do you pay any taxes or anything on the profit made on the property since it was purchased?

Not if it is your home or primary residence, but yes if it's a second property or investment.

[Smokin Joe]

typ, if it's your main home then you don't pay any taxes.  if it's not your main home but you have lived in it at some stage then it's a little more complicated - but basically you will get some relief from the tax.
Whereas if it was a home that you had never lived in then you will be taxed on the gain.

[take_yer_points]

typ, if it's your main home then you don't pay any taxes.  if it's not your main home but you have lived in it at some stage then it's a little more complicated - but basically you will get some relief from the tax.
Whereas if it was a home that you had never lived in then you will be taxed on the gain.

Thanks for the info, but it might get complicated...

Its a house me and my brother bought 50/50 - mortgage and deeds etc.. in both our names. Its my primary residence but he lives in another house with his wife - so I suppose its a second house for him. However, he lived in it before we went 50/50.

If we were selling would it be best to transfer it into my name and sell it as my primary residence?

[Smokin Joe]

typ, if it's your main home then you don't pay any taxes.  if it's not your main home but you have lived in it at some stage then it's a little more complicated - but basically you will get some relief from the tax.
Whereas if it was a home that you had never lived in then you will be taxed on the gain.

Thanks for the info, but it might get complicated...

Its a house me and my brother bought 50/50 - mortgage and deeds etc.. in both our names. Its my primary residence but he lives in another house with his wife - so I suppose its a second house for him. However, he lived in it before we went 50/50.

If we were selling would it be best to transfer it into my name and sell it as my primary residence?

Transferring it into your name doesn't change the fact that your brother is still going to have to get shot of his half of the house - in fact if he transferred his half to you the it is deemed that he has sold his half at that time, so why complicate things?

As you said you'll have no issues re tax.

As your brother once lived in the house then the first year of ownership AND the last 3 years of ownsership of the house are given by the Revenue as Deemed residency (so they are exempt from tax as well).

So you'd need to know the dates of ownership and the dates that your brother lived in the house, but I'm sure based on the above Deemed residency periods the tax bill should be fairly light.

BTW, a quick google threw up this article as giving the best explanation:
http://news.bbc.co.uk/1/hi/business/3836315.stm

[take_yer_points]

Thanks Smokin Joe - I think we'll be ok. The last 3 years relief rule will cover the time that he's been living with the wife so we should be ok. Cheers.

[bcarrier]

Lads I got the reply below from an accountant friend. 
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There are no exemptions between family - the only way around it is gift relief.

Say your parents give you a site (free) they would be deemed to have received mrket value and would be liable to pay Capital Gains tax on that site

They can however elect to roll over the gain to yourself and when you would go to sell the site you would have a double tax charge in effect - but only when you sell it!

If the site & house however becomes your PPR (Main private residence) then it is exempt from any Capital Gains Tax if you go on to live in it.

So really if you build on the site and live in it and its your PPR you will have no tax to pay and neither will you father but if you build a house and sell it without living in it you will have to pay your gain and the gain rolled over from your father

Just as passedit said.

Much better to have made the transfer before grant of planning BTW. Maybe there is some correspondence to this effect mislaid ?

Alternatively you might be able to get OMV of site diminished by identifying some blight on title which would make implementation of consent difficult by someone other than yourself.