Gift of land from my brother to me

miss.piggy

Hi everyone,
I'm looking for some advice.
I grew up on a farm and I'm the youngest in the family. About 8 years ago my father retired and transferred the entire farm to my older brother. Now I am married and I have obtained planning permission to build a house with my husband on a plot of land within the farm. We now need to transfer the site into my name from my brother's name.
So I'm now trying to figure out the tax implications if any - capital acquisitions tax and stamp duty? Does anyone know what the story is? I have a feeling that we might be in trouble because my father did not give me the site (in effect that what is happening now) but I'm sure the revenue won't see it that way - they'll just take it as a transfer from my brother to me, am I right? And if so what are the tax implications?
Thanks in advance, any advice appreciated!

namenotavailablE

CGT- this is payable by the person disposing of the land- your brother. He may be liable on the difference between the original market value he acquired the portion of land for from your father and the current market value now. The tax rate is approx 25% (possibly 22%?) of the difference.
Additional considerations apply if the land is development land, which it sounds as if it is, if you're intending to build a house on it.

Re CAT- you should enquire to see if you'd qualify for agricultural relief. Essentially, if your agricultural assets account for 80% or more of your total assets you may be able to reduce the value of the land by 90% and pay tax, if any, on the balance. There are tax exempt thresholds which - if the 10% value of the land does not exceed (and assuming you haven't previously received gifts from your siblings)- may mean that no CAT is payable.

One other thing : you could enquire about a legal mechanism called a 'Deed of family arrangement'- it is probably too late to implement this but it basically allows a variation of an initial transfer of assets in certain circumstances between family members. I think there are fairly tight time-deadlines applying (which are likely exceeded) but enquire anyway.

Mr. Incognito

The solicitor handling the transfer should be able to sort you out on this. In land transactions ensure you have competent professional advice.

There are CGT/CAT issues there that need to be sorted professionally.

miss.piggy

Thanks for the replies. I have managed to find some info. A parent can give a child land up to a value of €434000 before any tax is payable.
Unfortunately this will not now apply to me as the land is in my brothers name. A person can only give a sibling land up to a value of €43,400 and then tax is payable on the value above this. So if I can get the site valued at less than this I will be ok. Also a gift of land can be given from anyone to anyone to a value of €21,700 without tax (CAT) implications. So I wonder if my brother transferred the site into myself and my husbands names combined are we entitled to a combined threshold of €65,100?

Mr. Incognito

There are specific relationships that attract specific CAT thresholds- your brother will also have CGT issues on the disposal.

There is also a CGT/CAT set off where both arise on the same transaction.

I appreciate you trying to educate yourself on the ins and outs of the transaction but Land transfers are expensive to rectify if done incorrectly.

In addition the market value always applies for tax purposes regardless of any doctored consideration.

Once again- seek professional help. This is NOT something you can wing.