Transfer of ownership of site

cluelessx2

Hi, I'm currently in the planning application process. However, dad read in the newspaper last week that there would be some sort of change to the gifting of a site to a child, ie that it could now cost a fortune. Unfortunately he's quite vague on the details - has anyone on here heard anything about this?

ThePiedPiper

cluelessx2 wrote: »

Hi, I'm currently in the planning application process. However, dad read in the newspaper last week that there would be some sort of change to the gifting of a site to a child, ie that it could now cost a fortune. Unfortunately he's quite vague on the details - has anyone on here heard anything about this?

It seems certain that a lot of the tax breaks in relation to land, retirement relief, etc will be targeted in the forthcoming budget. The minister implied in the last budget speech that this would happen. There is no certainty however which precise tax breaks will be done away with.

The current limit on the value a site a parent can pass to a child without tax implications is €500,000 and a site size of an acre. This relief could possibly be halved, say to €250,000. Even if it was, the vast majority of sites would still be under that limit. It seems unlikely that the relief would be done away with altogether but only the minister knows what he might introduce or what reliefs will be cut.

The Lone Ranger

The current limit on the value a site a parent can pass to a child without tax implications is €500,000 and a site size of an acre. This relief could possibly be halved, say to €250,000. Even if it was, the vast majority of sites would still be under that limit. It seems unlikely that the relief would be done away with altogether but only the minister knows what he might introduce or what reliefs will be cut.[/quote]

where did you find this info, would like to read further on it. thanks:D

muffler

This is probably better in the Accommodation & Property forum

Moved from Construction & Planning

cluelessx2

It was in the Farming Independent supplement 2 weeks ago (3rd?) I think.

ThePiedPiper

http://www.revenue.ie/en/tax/stamp-duty/certificates/transfer-site-child.html

The above deals with Stamp Duty.

Below is from http://www.revenue.ie/en/tax/cgt/cgt-faqs.html

Transfer of a site from parent to child Page 16 of CGT Guide (PDF, 212KB), point 6.
There is an exemption from CGT if you transfer a site to your child (including certain foster children) where the transfer takes place after 6 December 2000 and is to enable the child construct a principal private residence on the site. The site must not be valued at more than €254,000. For transfers on or after 1 February 2007 the area of the site (exclusive of the area on which the house is to be built) must not exceed 0.4047 hectare, ie 1 acre. The relief is clawed back and charged on the child in certain circumstances.

TheCGT threshold had increased to €500,000 - not sure why the Revenue didn't update that part of the FAQs

Hope that helps somewhat..

As for what might happen to the reliefs in the future, it's only speculation but the consenusus would be that the relief for transfer from parent to child will not be abolished. We'll see in December.