Transfer of site - tax implications

StopWatch

Hopefully this is a good place to find this info .
As per charter, I'm not looking to avoid tax, I'm looking for correct info and implications. I will pay whatever taxes are required, but I'd like to know where I stand in advance.
My mother has some farm land. She wants to transfer an acre to me for me to build a house on. Near to her home as she's getting on. And local needs planning will apply.
So, I am under the impression I get an auctioneer to value that site, which is agricultural, and then I proceed with my solicitor and hers sorting transfer.
But, I am under the impression that CGT will not be owed on this, as per
https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/transfer-of-a-site-from-a-parent-to-a-child.aspx
Whereas my mother solicitor has informed her I will owe 7% of valuation to revenue.
I'm bewildered by tax implications so any help is much appreciated.
Is he wrong?

You are mixing up capital gains tax and stamp duty.

Stamp duty will be payable at either the lower residential rate for a site or the higher standard rate for agricultural land.
https://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/stamp_duty.html

Personally I went through this recently and valued the site as residential and paid the lower rate of stamp duty.
This will use up some more of the amount I can inherit tax free though. It is a balance so - take some legal advice yourself.

StopWatch

[Deleted User] wrote: »

You are mixing up capital gains tax and stamp duty.

Stamp duty will be payable at either the lower residential rate for a site or the higher standard rate for agricultural land.
https://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/stamp_duty.html

Personally I went through this recently and valued the site as residential and paid the lower rate of stamp duty.
This will use up some more of the amount I can inherit tax free though. It is a balance so - take some legal advice yourself.

Thanks, very helpful. As my mother is over 67 the stamp duty would be 7.5%
Good to know.

muddle84

If you're a qualified farmer( have a green cert) and under 35 you would be exempt from stamp duty if it was agricultural land.

zf0wqv9oemuasj

As far as I’m aware you need to farm the land for a number of years in order to avail of the 0% rate of stamp duty.