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Transfer of site - tax implications

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  • 21-10-2020 9:50am
    #1
    StopWatch
    Registered Users Posts: 199 ✭✭


    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?


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    #2
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    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.


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    #3
    StopWatch
    Registered Users Posts: 199 ✭✭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.


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    #4
    muddle84
    Registered Users Posts: 1,681 ✭✭✭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.


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    #5
    zf0wqv9oemuasj
    Closed Accounts Posts: 117 ✭✭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.


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