Query on transfer of site between siblings

K

KBREN

Guest
I have been searching through the forums but have not found an answer to my dilemma. I am thinking of using my sister’s site to build. Here’s the background.
My parents gave my sister money to pay for the site 2 years. My sister has outline planning on the site. I am now looking to use the site to build a house for my own use.

I know I could buy the site directly off my sister, at today’s value; this should be a straight forward process.
But, I was wondering would there be another way around this, maybe through transfer of inheritance from my sister to me. There may be an obvious problem with this though, as the value of the site would be worth more today than 2 years ago. There would also be stamp duty to deal with.

Would anyone have any ideas on how to accomplish the site transfer?
What way would the tax fees work, if any, on my sister, my parents and myself?
Any advice would be appreciated. Thank you.
 
I don't see any way around this.

The transfer of the site from your sister to you will attract Capital gains tax (at 20%) for your sister on the increase in the value of the site since she bought it. If she does not charge you the full market value, any short fall will be a gift which may be subject to CAT (depending on the value and other gifts received by you from siblings/grandparents/aunt & uncles). However, if there is both CGT and CAT you can claim a credit of the CGT against your CAT liability.

Stamp duty at half the normal rate will also apply.
 
Thanks for the feedback Nige.

Is there any way of transferring inheritance from parents from one sibling to another i.e transfer my sisters inheritance (value of site 2 years ago) to myself. Is there no exemption in the CAT that will allow this. Afterall, if this transfer of inheritance can be done, it does not affect the overall scheme of things within the family.
 
firstly, this wasn't an inheritance your sister received from your parents as you say your parents gave her a gift of money.

Secondly, while there is provision for family members to amend inheritances (and ONLY inheritances) by a deed of family arrangement, this has to be done very soon after the death.
 
As Nige states there's no inheritance here to either you or your sister as inheritance only occurs after death and your parents appear to be alive and well. The money your sister received to buy the site was a gift from your parents.
I'm not clear on whether your sister is now giving you a gift of the site as she purchased it, with you paying only the extra amount that it has appreciated in the 2 years or, are you paying the market value?
If she is the registered owner of the site and you are purchasing it from her I can't see what this has to with gits or parents.
Maybe I'm just missing something!
 
You're correct Nellie123 that if I purchase the site at todays value then it will be a straight forward purchase, with normal stamp duty, land registry, etc.
The reason I posted was to seek advice on obtaining the site through a gift from my sister, without having to pay expensive gift taxes, as my parents gifted the money to my sister to purchase the site 2 years ago. I thought there might be an option to transfer this gift within the family.
If this cannot be done, then purchasing the site may be my only option.
 
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