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Gift tax & stamp duty for site

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  • 06-03-2012 12:11am
    #1
    0utandAbout
    Registered Users Posts: 17 ✭


    Hi all,
    Not sure if this is the right forum but hopefully someone can help - I've been given a gift of a site from my aunt. We're now in the process of doing the paperwork & will be getting a valuation done. What needs to be paid to Revenue? Is it 2% stamp duty and then gift tax on top of that? or just the stamp duty? I'm a bit confused at the moment, I talked to Revenue previously and they said gift tax but I talked to the solicitor today and she said stamp duty not gift tax. Is it one or the other or is it both?
    Thanks!


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    #2
    muffler
    Registered Users Posts: 46,106 ✭✭✭✭muffler


    This is one for the Accommodation & Property guys so I'll nudge it over there for you :)


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    #3
    0utandAbout
    Registered Users Posts: 17 ✭0utandAbout


    muffler wrote: »
    This is one for the Accommodation & Property guys so I'll nudge it over there for you :)

    Thanks :-)


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    #4
    Lambsbread
    Closed Accounts Posts: 442 ✭✭Lambsbread


    I would assume you would be liable for CAT. Although there are thresholds for which you will not have to pay tax. In your case if the site is worth less that €16,604 you won't have to pay CAT:

    [HTML]http://www.revenue.ie/en/tax/cat/thresholds.html[/HTML]

    I am not sure about the stamp duty though :) I was only researching CAT recently for myself.


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    #5
    Victor
    Registered Users Posts: 78,423 ✭✭✭✭Victor


    If less than the €16,000, you just pay stamp duty.

    If more than €16,000 you pay stamp duty + CAT.

    The valuation needs to be independent.


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    #6
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    The threshold is not €16k, it's actually €33,500 (Group B Threshold for a Nephew or Niece receiving a gift). So once the valuation on the site comes in below this level you will have no CAT to pay and will just have some level of stamp duty which your solicitor will be able to work out for you.


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    #7
    Victor
    Registered Users Posts: 78,423 ✭✭✭✭Victor


    killers1 wrote: »
    The threshold is not €16k, it's actually €33,500 (Group B Threshold for a Nephew or Niece receiving a gift). So once the valuation on the site comes in below this level you will have no CAT to pay and will just have some level of stamp duty which your solicitor will be able to work out for you.
    Weren't the thresholds changed in the last 2-3 years?


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    #8
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Victor wrote: »
    Weren't the thresholds changed in the last 2-3 years?

    They were, but the figures I gave are the most recent ones... Finance Bill on 8th Feb 2012 plans that Group B Threshold (which applies here) be rounded up to €33,500. See link below..

    http://www.revenue.ie/en/tax/cat/thresholds.html


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    #9
    0utandAbout
    Registered Users Posts: 17 ✭0utandAbout


    Thanks guys
    As its gift from Aunt to niece the threshold does seem to be 33k and I think there's also 3k per year that is exempt.
    I thought we were sorted as the land was purchased recently for 15k as agricultural land....worried now that if we do an independent valuation it'll be worth more than that as its now a site we'd be hoping to build on.....guess we'll see what comes of the valuation!
    Thanks for the advice as always :-)


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    #10
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    0utandAbout wrote: »
    Thanks guys
    As its gift from Aunt to niece the threshold does seem to be 33k and I think there's also 3k per year that is exempt.
    I thought we were sorted as the land was purchased recently for 15k as agricultural land....worried now that if we do an independent valuation it'll be worth more than that as its now a site we'd be hoping to build on.....guess we'll see what comes of the valuation!
    Thanks for the advice as always :-)

    Tell the Valuer that the land was purchased recently for €15k and tell them you need it to come in under the CAT threshold! You won't have an issue...


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    #11
    0utandAbout
    Registered Users Posts: 17 ✭0utandAbout


    killers1 wrote: »
    0utandAbout wrote: »
    Thanks guys
    As its gift from Aunt to niece the threshold does seem to be 33k and I think there's also 3k per year that is exempt.
    I thought we were sorted as the land was purchased recently for 15k as agricultural land....worried now that if we do an independent valuation it'll be worth more than that as its now a site we'd be hoping to build on.....guess we'll see what comes of the valuation!
    Thanks for the advice as always :-)

    Tell the Valuer that the land was purchased recently for €15k and tell them you need it to come in under the CAT threshold! You won't have an issue...


    Wise words ;-)


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    #12
    lobber
    Registered Users Posts: 163 ✭✭lobber


    0utandAbout wrote: »
    Thanks guys
    As its gift from Aunt to niece the threshold does seem to be 33k and I think there's also 3k per year that is exempt.
    I thought we were sorted as the land was purchased recently for 15k as agricultural land....worried now that if we do an independent valuation it'll be worth more than that as its now a site we'd be hoping to build on.....guess we'll see what comes of the valuation!
    Thanks for the advice as always :-)

    Hi,
    How did all of this pan out for you? Am going down the same route now and would like to get some other peoples experiences


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