Land transfer and stamp duty/budget 2012

tweety11981

Hi,
To cut a long story short, land transfer due to take place, direct transfer from father to son. The tax year runs from end of december 2011 to end of December 2012, and i we have started consulting our solicitor and accountant with regard to advice, and have got land valuations etc.

My question is, If no transfer is done BEFORE the budget date which I think is December 7th, can we wait and see what the budget holds for capital gains tax and stamp duty rate, before we go ahead with the transfer, as we have 28 days after that to play with, so to speak. I was told not all documents need to be in before the actual budget day.

Can anyone confirm, since the transfer documents were started before the budget and we wait after the budget, will be ok? Will the revenue still see the transfer as being in the 'previous' tax year with its tax implications after the budget?

thanks.

mari2222

Who knows? But most likely the budget will signal changes to be introduced in this respect rather than overnight! Legislation will have to be passed and there is an EU prohibition on "retrospective" punitive implications, so I think you are safe enough.........this is not to be interpreted as definitive! just friendly comment.

tweety11981

thanks Mari2222, just wanted to see if others are in the same boat! I forgot about the passing of legislation bit myself lol

Stampman

Hi, the income tax year isn't relevant for stamp duty or CGT, stamp duty is payable within 44 days of the conveyance, or within 30 days if a gift, CGT is (I think) paid by end of January for transactions in December.

CGT is payable by reference to the contract date, stamp duty by reference to the conveyance (completion).

As CGT is hotly tipped to go up in the budget, and if it does it will go up from budget date (even though the leg won't be passed until early 2012 when the Finance Act is signed) and stamp duty on non-residential property may drop (based on comments by Noonan), the best bet is to sign the contract before next Tuesday (CGT trigger and current rate applies) but leave the conveyance until after Tuesday (stamp duty trigger and possibly at lower rates).

tatoo

What'a the situation now on agricultural land transferrance from father ( 66yrs plus )to son, is it C.A.T. exempt up to valuation of €3 million, presumably there's stamp duty payable, and if so at what rate ?