Stamp duty on self build

sarah88

Hi I have tried to research this but can't seem to find the exact information I need.
I have been gifted a half acre site which I plan to build a house on in the coming months.

I am just in the process of getting the land signed over into my name. I am better to do this prior to getting planning permission?- the land would be valued for less minus planning, meaning less stamp duty to be paid.
Or will I need to pay stamp duty again once the house is built?

Calahonda52

No second lot of SD as SD is payable on the transfer of an asset.
Yes re the lower SD on a lower valuation, pre planning: it also impacts less on your CAT thresholds.
However make sure you have all items like rights of way/wayleaves/access for services etc all sorted

SD is lower on asset transferred between family members

dubrov

Unless the gift is from your parent or spouse I'm pretty sure you'll pay 6% up front based on the value of the land. You'll get a refund of 4% if you start a residential build within 30 months of the transfer

A solicitor can advise for sure

dellas1979

Hi OP,

I had a site transferred to me from my parents last year (not sure who is transferring to you, assume its parents).

I did mine prior to planning. Yes, the valuation will more than likely be more once it has PP.


You will need a valuation report from an auctioneer (I got a local one).
Then sent into solicitor.
You pay 1% stamp duty on the value of the site. And also land registry fees.
I cant remember exactly how much I paid....but I think it was around e1500 (1% stampy duty, land registry fees, plus solicitor fees (solicitor fees can vary....mine had to do a little bit more than usual as the lan transfer threw up some old folio issues).
That's it. You dont pay anymore stamp duty.

Calahonda52

dellas1979 wrote: »

Hi OP,

I had a site transferred to me from my parents last year (not sure who is transferring to you, assume its parents).

I did mine prior to planning. Yes, the valuation will more than likely be more once it has PP.


You will need a valuation report from an auctioneer (I got a local one).
Then sent into solicitor.
You pay 1% stamp duty on the value of the site. And also land registry fees.
I cant remember exactly how much I paid....but I think it was around e1500 (1% stampy duty, land registry fees, plus solicitor fees (solicitor fees can vary....mine had to do a little bit more than usual as the lan transfer threw up some old folio issues).
That's it. You dont pay anymore stamp duty.

https://www.revenue.ie/en/property/stamp-duty/current-rates-of-stamp-duty/residential-and-non-residential-land-and-buildings.aspx
sets out the rates.

Land, IMO, does not merit the 1%, may be wrong

https://www.revenue.ie/en/property/stamp-duty/property-transferred-as-a-gift-or-inheritance/index.aspx
&
https://www.revenue.ie/en/property/stamp-duty/working-out-your-stamp-duty/consanguinity-relief.aspx

sarah88

dellas1979 wrote: »

Hi OP,

I had a site transferred to me from my parents last year (not sure who is transferring to you, assume its parents).

I did mine prior to planning. Yes, the valuation will more than likely be more once it has PP.


You will need a valuation report from an auctioneer (I got a local one).
Then sent into solicitor.
You pay 1% stamp duty on the value of the site. And also land registry fees.
I cant remember exactly how much I paid....but I think it was around e1500 (1% stampy duty, land registry fees, plus solicitor fees (solicitor fees can vary....mine had to do a little bit more than usual as the lan transfer threw up some old folio issues).
That's it. You dont pay anymore stamp duty.

Great thanks. Was it definitely 1%? Just looked back on the documents gotten from my solicitor and it does mention 6%.

sarah88

Calahonda52 wrote: »

https://www.revenue.ie/en/property/stamp-duty/current-rates-of-stamp-duty/residential-and-non-residential-land-and-buildings.aspx
sets out the rates.

Land, IMO, does not merit the 1%, may be wrong

https://www.revenue.ie/en/property/stamp-duty/property-transferred-as-a-gift-or-inheritance/index.aspx
&
https://www.revenue.ie/en/property/stamp-duty/working-out-your-stamp-duty/consanguinity-relief.aspx

Thanks for the info. Very helpfull

dubrov

The commercial rate should apply to a site (i.e. no residential house on the land).

The commercial rate increased from 2% to 6% in the last budget with the addition of a refund if you start building in the land within 30 months

dellas1979

sarah88 wrote: »

Great thanks. Was it definitely 1%? Just looked back on the documents gotten from my solicitor and it does mention 6%.

Yep-its was definitely 1%. Just looked at invoice there.

It was around sept last year. Was 1/2 acre.

I cant open some of the links posted here, so am not sure what the 6% is about/what that applies to.


Edit:https://www.revenue.ie/en/property/stamp-duty/current-rates-of-stamp-duty/residential-and-non-residential-land-and-buildings.aspx

I would ask your solicitor directly though. Just to be very clear.

dubrov

dellas1979 wrote:

Yep-its was definitely 1%. Just looked at invoice there.

Was it farmland though where you started an intention to farm the land or at least rent it to someone who would farm it?

If not, I think 2% should have applied last year

dubrov

Here is a link to the revenue website which provides some guidance on commercial property stamp duty.

Non-residential property for Stamp Duty purposes includes:
sites (other than sites purchased with a connected agreement to build a house or apartment)

Note a connected agreement here refers to the situation where you buy the site and build as part of one agreement. This would occur when someone buys a house off the plans from a builder. It wouldn't apply to a self-build where you buy the site first and contract a builder separately.