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What do you pay for when getting a site in your name?

  • 13-08-2018 1:55pm
    #1
    mykulz
    Registered Users, Registered Users 2 Posts: 2 ✭


    My partner and I are in the mid stages of planning to build our first house.

    There's a bit on confusion with regards to capital gains and stamp duty:

    1. My parents solicitor said that my parents will be hit with a capital gains tax once they put the site in my name.

    2. My friend who works in a bank said that all we have to pay is the stamp duty.

    Any info on this would be would be great.


Comments

  • #2
    nitros7
    Registered Users, Registered Users 2 Posts: 326 ✭✭nitros7


    This can be muggy enough to figure out, a good accountant or solicitors advice is best but this is how I understand it.


    If your parents are only transferring the site to you as a gift then no capital gains is due up to a certain value. However if they are transferring it in your joint names and you are not married then you could fall fowl of CGT.


    Also if you planning on a joint mortgage some banks require the site to be in both parties names.


    You will be liable for Stamp duty. This is dependent on the value of the assets being transferred. You would be best to instigate the transfer before planning goes in on the site as a site with FPP will obviously be worth a heck of a lot more than say farmland!


    mykulz wrote: »
    My partner and I are in the mid stages of planning to build our first house.

    There's a bit on confusion with regards to capital gains and stamp duty:

    1. My parents solicitor said that my parents will be hit with a capital gains tax once they put the site in my name.

    2. My friend who works in a bank said that all we have to pay is the stamp duty.

    Any info on this would be would be great.


  • #3
    Turnipman
    Closed Accounts Posts: 789 ✭✭✭Turnipman


    mykulz wrote: »

    My partner and I are in the mid stages of planning to build our first house.

    There's a bit on confusion with regards to capital gains and stamp duty:

    1. My parents solicitor said that my parents will be hit with a capital gains tax once they put the site in my name.

    2. My friend who works in a bank said that all we have to pay is the stamp duty.

    On the CGT question:
    CGT exemption on the transfer of a site from parent to a child

    If a person transfers land to their child to build a house which is to be the child’s only or main residence, the transferor will not have to pay CGT on the transfer.

    In order to qualify for this exemption, the site must be:
    an area of no more than one acre
    with a value of no more than €500,000

    ​In addition, the child is required to build a house on the land and occupy that house as their only or main residence for a period of three years.

    However (as advised above) the question of your partner's potential liability for CGT needs to be investigated.

    You will be liable to pay Stamp Duty at 1% of the value of the land transferred.


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