Inheritance tax

meathboy

I have been given a site by family. I have received planning. I've just heard that I may have to pay inheritance tax on the site - is this correct?

De_man

you're very brief in your description (too brief)....but assuming i've got it right you're talking about gift tax & not inheritance tax see
www.revenue.ie and search gift tax..

should answer your questions on the site there, i reckon you should go and
see your solicitor or accountant for this one

Slates

meathboy wrote: »

I have been given a sight by family. I have received planning. I've just heard that I may have to pay inheritance tax on the site - is this correct?

A son or daughter can recieve up to an Acre for a site without any tax implications

muffler

That he man Victor will be able to help you out over in Accommodation & property. Moved

The_Conductor

meathboy wrote: »

I have been given a site by family. I have received planning. I've just heard that I may have to pay inheritance tax on the site - is this correct?

It depends on which family member (a parent may gift to a much higher value on a once off basis, than say an aunt or an uncle, for arguments sake). It also depends on the size of the site, and the nature of the site.

FYI- Gift tax is tax due on a gain, if the person making the gift is still alive, inheritance tax is when the person making the gift has died. There are different rules and levels on both- its unclear from your message which you are talking about.

If the relationship to the donor is son/daughter- you can receive a gift or inheritance of a maximum of €521,208 tax free (any excess is at 20% tax rate). If the relationship is Parent*/Brother/Sister/Niece/Nephew/Grandchild the limit is €52,121. If the relationship is other than either of these two groups- the maximum once off gift which may be received tax free is €26,060.

There are some possible exceptions to the rules that may be used to offset potential gains (such as Agricultural relief and some other measures)

Its really impossible to comment further without additional information.

S.

meathboy

Thanks Smccarrick.

Details are: site is being given to me from a brother. So I'm guessing the limit is 52K, after which I pay tax?

I understand this depends on the vaule of the site, which is determined by the size, location, etc.

Again, thanks for your help - very useful.

astrofool

Does a gift given effect inheritance at a later stage?

The_Conductor

astrofool wrote: »

Does a gift given effect inheritance at a later stage?

It can.
Some gifts are considered to be one-off gifts from a tax perspective.
It really depends on the nature of the gift, its value and who its from.

Worst case scenario at current levels, is a tax demand equal to 20% of the nominal value of the gift, over whatever the relevant treshold may be.

S.

meathboy

smccarrick - do you need any more detail from me to accurately gauge this?

If my brother gives me a site valued at 100,000 - what is the tax hit?
If my uncle gives me a site valued at 100,000 - what is the tax hit?

The_Conductor

meathboy wrote:

smccarrick - do you need any more detail from me to accurately gauge this?

If my brother gives me a site valued at 100,000 - what is the tax hit?
If my uncle gives me a site valued at 100,000 - what is the tax hit?

Its the same for both- 20% of the excess, which is 20% of 47,879- a total tax due of €9,576

Shane