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Gifting land to son

  • 13-07-2012 2:13pm
    #1
    Gilally
    Registered Users Posts: 128 ✭✭


    My FIL wants to gift 8 hactares of land to my husband before he turns 35, what other costs can we expect to incurr from this? Does he pay gift tax or something similar?


Comments

  • #2
    whelan1
    Closed Accounts Posts: 11,786 ✭✭✭✭whelan1


    Gilally wrote: »
    My FIL wants to gift 8 hactares of land to my husband before he turns 35, what other costs can we expect to incurr from this? Does he pay gift tax or something similar?
    does your husband have a green cert


  • #3
    Gilally
    Registered Users Posts: 128 ✭✭Gilally


    No, I am in the middle of trying to find out where he could do the course for it.


  • #4
    Username John
    Closed Accounts Posts: 4,237 ✭✭✭Username John


    Gilally wrote: »
    No, I am in the middle of trying to find out where he could do the course for it.

    Talk to a solicitor first - it might not be worth it to do the course (unless he wants to anyways of course)
    This post refers to stamp duty being 1% - for 8 Ha, this means the stamp duty might only be around 1000 - 2000euro (depending on value of land)

    It also depends on what assets ye already have (house, car, bank) vs what ye will have once the farm is transfed, as this will access whether he is a farmer or not (known as agricultural relief)

    Like I say - speak to a solicitor.


  • #5
    Gilally
    Registered Users Posts: 128 ✭✭Gilally


    Many thanks for this.


  • #6
    KCTK
    Registered Users, Registered Users 2 Posts: 378 ✭✭KCTK


    Gilally wrote: »
    No, I am in the middle of trying to find out where he could do the course for it.
    Green Cert only counts for young farmer relief which is for stamp duty exemption. As Username John has said it is only 1% for transfers between father and son so probably not a huge deal and how long does green cert take/cost these days? (long time ago since I done mine!!)

    Agricultural relief is for Capital Acquisitions tax. This is available if 80% of your OH's assets are more than 80% agricultural after the transfer (if ye own a house and it has a mortgage then value of mortgage taken off house value). If he qualifies then value of land reduced by 90% for CAT calculation. as gift from a parent he has a €250k lifetime limit before he will have to pay CAT on any gifts from parents.

    If OH's father is over 55 then he can avail of retirement relief on the transfer of this land and not suffer CGT on it either.


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  • #7
    brian_t
    Registered Users, Registered Users 2 Posts: 6,731 ✭✭✭brian_t


    KCTK wrote: »
    Agricultural relief is for Capital Acquisitions tax. This is available if 80% of your OH's assets are more than 80% agricultural after the transfer (if ye own a house and it has a mortgage then value of mortgage taken off house value). If he qualifies then value of land reduced by 90% for CAT calculation. as gift from a parent he has a €250k lifetime limit before he will have to pay CAT on any gifts from parents.

    Am I correct in saying that this threshold is continually being lowered and potential tax increasing.

    And this trend in unlikely to change for the forseeable future.


  • #8
    KCTK
    Registered Users, Registered Users 2 Posts: 378 ✭✭KCTK


    brian_t wrote: »
    Am I correct in saying that this threshold is continually being lowered and potential tax increasing.

    And this trend in unlikely to change for the forseeable future.

    You are correct, was €434K back in 2009 and now down to €250k for Group A and cant see anything stopping them dropping it again.
    http://www.revenue.ie/en/tax/cat/thresholds.html


  • #9
    Viewtodiefor
    Registered Users Posts: 1,217 ✭✭✭Viewtodiefor


    Gilally wrote: »
    No, I am in the middle of trying to find out where he could do the course for it.

    Can be done in teagasc Kilkenny/ Kildalton and other locations. Now takes 18 mts to complete 20days compulsory attendance an costs around 2000 euro. Plus places very limited at present.


  • #10
    Gilally
    Registered Users Posts: 128 ✭✭Gilally


    So bar the 1% which we will pay as the cert course cost 2000 euro, I think we might qualify for the agricultural relief taking our mortgage into account. Is there any other tax or cost incurred we should know about?

    Many thanks for the replies.


  • #11
    KCTK
    Registered Users, Registered Users 2 Posts: 378 ✭✭KCTK


    Gilally wrote: »
    So bar the 1% which we will pay as the cert course cost 2000 euro, I think we might qualify for the agricultural relief taking our mortgage into account. Is there any other tax or cost incurred we should know about?

    Many thanks for the replies.

    Well thats just the tax, guess you'll have solicitor fees for the transfer and land registry fees etc, but they shouldn't be too much if everything is in order.


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  • #12
    Gilally
    Registered Users Posts: 128 ✭✭Gilally


    Thank you, would anyone have a rough guide of what amount we can expect to pay a solicitor and the land registry?


  • #13
    bear_hunter
    Banned (with Prison Access) Posts: 87 ✭✭bear_hunter


    you can recieve a gift of up to something like 478 k from a parent and avoid gift tax , add in agricultural relief and its way higher

    their wont be a problem


  • #14
    Username John
    Closed Accounts Posts: 4,237 ✭✭✭Username John


    bear_hunter wrote: »
    you can recieve a gift of up to something like 478 k from a parent and avoid gift tax , add in agricultural relief and its way higher

    their wont be a problem

    See here

    Its now 250k - it was ~430k in 2009. But the threshold was reduced a lot in the last 2 budgets.


  • #15
    bear_hunter
    Banned (with Prison Access) Posts: 87 ✭✭bear_hunter


    Username John wrote: »
    See here

    Its now 250k - it was ~430k in 2009. But the threshold was reduced a lot in the last 2 budgets.

    was agricultural relief rolled back , its 90% , a son or daughter who was full time farming could recieve a farm worth in excess of a million and still have no gift tax liability


  • #16
    jntsnk
    Registered Users, Registered Users 2 Posts: 476 ✭✭jntsnk


    The law society has changed the requirement when transferring land. 2 solicitors are needed to proceed with transfer. One each representing each party. It's putting a lot of expense on people , they claim it's a fairer system, where no one party can manipulate the transfer. Not too sure has it come in that rule till the end of the year or it's in already !


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