Will I pay tax on site/land from Granny

MrLNB

Hi all,

I need some advice on taxation.

I have a 2 acre site which I will get from my grandmother (still alive).
Reading from the revenue site its a bit confusing. what tax will i be liable for.
I am aware of the Stamp duty,so that's all ok. But its the gift/cgt is what I am wondering about.

If there is anyone in here with a taxation head I would love your opinion, I was told by a solicitor that my granny would be liable for CGT of 25% and that i would be liable for gift tax if the value of the land was over €54k. something is telling me from my Tax days in college that he is wrong.

all opinions welcome, or the best way to go about this.

Many thanks,
LNB

Mr. Incognito

Please read the charter re specific tax advice- in short- we don't do it.

You have hired a solicitor. If you are not satisfied with his explanation you can get a second opinion and if he's wrong you can sue him.

Your Gran will be liable for CGT on the disposal and you will be liable for CAT. If they arise on the same transaction there is a set off of CAT for the amount of CGT paid.

In addition you may qualify for agricultural relief if 80% or more of your assets are agricultural assets after the transfer.

You can look up the CAT thresholds on the Revenue website. It's about 54K. That means you can deduct that from the value of the land and the rest is taxed.

MrLNB

Hi all,

Somebody here might have gone through the same thing and may not.

I am getting a site/land from my Granny to build on, and I am just wondering what tax I will be liable to. I understand that the stamp duty will be payable on the value of the land.

The site is just over 4 acres in total.

I am aware that there will possibly be CGT (and gift tax if it’s valued over 443,400k, which it won’t) (previous to Apr 2009 it was 54,254)

Can the CGT be off set against anything? I suppose if anyone has gone through the same scenario id like to hear what’s involved.

Much appreciated

LNB

mr_edge_to_you

Is it possible for your granny to gift it to your parents and then they gift it to you. I know it may be more cumbersome but you could eliminate or greatly reduce your tax liability as the property is moving from parent to child. I know the tax rules change when it is a gift from a grandparent. I think the limit is about 50k for such a gift. Do you also need the full 4 acres? A smaller site with no planning permission may not be as valuable depending on the location. Something is only worth what someone will pay. Talk to the Citizens Information gang on 021 4521600, very helpful and confidential!

sydthebeat

thread moved to a more appropriate forum.

Legend100

Mr Edge that would not work as it would be treated as gift splitting and Revenue have anti avoidance measures to protect against such a gift.

If you were to go this route then the parent would have to hold onto the site for a period of 3 years before being entitled to pass the gift onto the child

Mr. Incognito

You have already started a thread in taxation.

Please do not duplicate threads.

Threads merged.

MrLNB

sydthebeat wrote: »

thread moved to a more appropriate forum.

Hi,

1. I have it already posted in taxation for tax purposes.
2. I posted in Construction and planning to see whether anyone else had the same scenario. You think building people will be on taxation more????????????

What’s with you people.

What’s the chances of a person been on taxation when they are half way through a build

You should probably ask for the reasons of posting before moving it.

There goes another thread off topic.

Mr. Incognito

You are asking a question on taxation.

You asked it here. You got a reply.

You then tried to ask it indirectly in construction.

How many tax heads do you think are floating around in construction?

Anyway, mods do not have to ask you if they deem a thread to be in an inappropriate forum. The question was on taxation- it was moved to taxation. We are not here to facilitate you getting more hits on a thread in hope of a freebie answer. The reason is simple. General discussion of a particular scenario is just that. Generic if's and buts. Specific answers are a potential lawsuit.

You have employed a solicitor. Use him. You won't get guaranteed expert advice on Boards.

I'll leave the thread open at the moment. Kindly do not question mod functions in future. If you have a problem with a particular mods actions pm the mod or take it to feedback.

mr_edge_to_you

Cheers legend, good thing i'm a CIMA head and not an ACCA/ACA head!

MrLNB

Mr. Incognito wrote: »

You are asking a question on taxation.

You asked it here. You got a reply.

You then tried to ask it indirectly in construction.

How many tax heads do you think are floating around in construction?

Anyway, mods do not have to ask you if they deem a thread to be in an inappropriate forum. The question was on taxation- it was moved to taxation. We are not here to facilitate you getting more hits on a thread in hope of a freebie answer. The reason is simple. General discussion of a particular scenario is just that. Generic if's and buts. Specific answers are a potential lawsuit.

You have employed a solicitor. Use him. You won't get guaranteed expert advice on Boards.

I'll leave the thread open at the moment. Kindly do not question mod functions in future. If you have a problem with a particular mods actions pm the mod or take it to feedback.

lol :rolleyes:

do me a favour, delete the dam thread, seeing that it was hijacked by everyone apart from obama.

I will add, (again) it was posted in Construction to see did anyone come about getting land through relatives and what they came up against (110% completely normal way of having a site apart from buying one).

I have seen so many posters lately (including my self) ask which i think are legitimate posting and it all be blown up by mods (who i would like to add should moderate the forum not hijack each thread and force an opinion on everyone else and then for other mods to back them up by more postings. ( the average thread in construction has 2 or more mods posting. (but its really great getting a WIDE opinion , isnt it. :D

Close it .

Mr. Incognito

Suit yourself.