tax implications for land gifted by relation

kmb

Anyone know what tax or other potential problems could arise from a second cousin gifting land.
Is there a lot of red tape etc,solicitors bills or is it fairly straight forward?
What approx would anyone know,would the transaction cost?
Or would it be cheaper to buy the 1/2 acre as agricultural for and then get planning for small bungalow?

Or maybe i shouldnt be asking these questions here?
Please close if not suitable for these questions.

Kind Regards,

Kieran

HAPPYGIRL

Well the tax in question is gift tax, since the land is coming from a second cousin then the exemption limits are €24,841.

Your first step should be to get an auctioneer to value the land, the lower the value the better for you!

If planning wont be an issue, then the land should be transfered as agricultural land. (lower value)

Then you just have get a solicitor to handle the transfer. You would have this cost anyway if you were to buy the land.

gift tax is a self assesment tax, you can get all the information you need at www.revenue.ie

Mack£r

The exemption limits of 24,841 are the total amount that you can receive during your lifetime from that group

Group............. Relationship to Disponer ...................................Group Threshold

...A................. Son/Daughter ................................................€496,824
...B.................. Parent*/Brother/Sister/ Niece/Nephew/Grandchild €49,682
...C .................Relationship other that Group A or B ...................€24,841
so if you received a gift from anyone else it will be added together and substracted from the treshold and you will be taxed on anything over the treshold with the exexption of 3000 per annum

See http://www.revenue.ie/index.htm?/revguide/capitalacquisitionstax.htm for more details about CAT

kmb

Thanks for the quick replys,appreciate it.

Kind Regards,
Kieran