Building - Stamp duty etc.

H

hanorac

Registered User
Messages
74
I'm getting a site from my dad, I'm married and will be building with my husband. When the site is transferred to me how does this work re. SD? I probably don't need my husbands salary etc for the mortgage money wise as we are not borrowing a huge amount, but obviously we'd both want to be responsible/benefit from our names on the house etc.

Another question, The house will be 225 sq m will it be liaible for sd? We are not first time buyers? how does this work?
 
Re: Building - Stamp duty etc ....

Sites in the area go for 85k upwards eventhough it couldn't be sold on the open market realistically as its behind my parents and sisters houses.
 
Re: Building - Stamp duty etc ....

Then the site will most likely be worth less than 85k.

As you probably know there is an exemption for parents transferring a site to a child which is worth less than 254k where it is the first such transfer and the child intends to build their ppr on same. The exemption is from stamp duty and CGT. To avail of it the transfer would have to be into your sole name.

Thereafter you could try to obtain a mortgage in your sole name, no further issues.

However if the bank insists on a joint mortgage in order to qualify for a certain amount then either they will allow you to have the property in your sole name, or will insist on it being in your joint names. You may indeed prefer if it were in your joint names.

So you then have to look at a further transfer from yourself to your husband. But because it is almost immediate the revenue will look at the transaction for CAT purposes as being a transfer of half the site from your parents to your husband and they are strangers, so he only has an exemption threshold from CAT of 24k approx- so above that ( on half of the value of the site) will be CAT at 20%. That further transfer should be exempt from stamp duty- transfers between spouses are exempt.

So the value is very important and your solicitor will be able to advise the rest.
 
Re: Building - Stamp duty etc ....

Hi Vanilla,
May I ask if your building a house do you pay stamp duty on the actual house/build if the site was transferred from ones parents as in hanorac's case?.
 
I think Vanilla's assesment is mainly right however I'm pretty sure that there is a relief from CAT for the husband in these circumstances.

Revenue will accept that in certain circumstances where a financial institution requires both names to be on the mortgage and sufficient evidence of that requirement is kept, the Revenue will accept that the deemed gift from the married childs parents (i.e. hanorac's parents) to the spouse of the child (hanorac's husband) will not be a connected gift. Therefore there would be no CAT on the transfer to the hanorac and her husband in those circumstances.

Source is a Revenue CAT Work manual and also in a footnote in Section 8 of the CAT legislation.
 
Newby said:
Source is a Revenue CAT Work manual and also in a footnote in Section 8 of the CAT legislation.
Click to expand...
I'm finding it hard to get hold of relevant info on this - getting frustrated!!!
Is it possible to view/get hold of /purchase either the cat work manual or the actual legalisation online that you mentioned?.
Thanks amil
 
i also have a site worth around 100,000 circa which my father gifted to me last year. no SD duty to pay on this but I am leaving it in my name instead of sharing it jointly with my husband. We have been told that the prudent way is to do this in a few years time!? We start build this year but will not need an irish mortgage as building from own savings and it will be our main home when we leave London.
My question is, is there SD due once the build of the house is finalised? I believe there isn't ? the house will be worth about 600,000 with a build cost of about 220,000 or thereabouts so effectively double in value or more considering we got the site for nothing apart from paying all legal costs involved in the transfer for myself and father.
 
You must log in or register to reply here.
Back
Top