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Tax on land transfer

  • 10-11-2011 9:08pm
    #1
    padraig.od
    Registered Users, Registered Users 2 Posts: 780 ✭✭✭


    Hi,

    My mother is planning on transferring to me some land (around 3/4 acre) in the near future. I will be applying for permission to build on it next year. I was wondering what is the most tax efficient way for both parties of transferring the land to me? I'm currently married and the site does not currently have planning permission.

    My thinking is (and I'm open to correction that's why I'm asking!) that because the site does not currently have planning permission it would be sold/gifted as agricultural land and so attract a lower value, and therefore a lower capital gain tax liability for my mother? Does that sound correct?

    Secondly because she would be selling/gifting it to both myself and my wife what sort of liability would my wife have? Suppose she gifted it to us, as a child I would fall into Group A and have no gift tax liability, whereas my wife would if the value of the gift is > 16k. This ties back to the question above I suppose.

    Just to put some figures on this:-

    On average 1 acre of argi land was sold for 8,500 in 2010. So using that value the land would be worth roughly 6375.
    There are no equivalent sites for sale in the area, but lets put a value of 40k on the site assuming it has planning permission.

    Thanks for your help


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