Capital gains on family site

L

louella85

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Hi

If my mother gifts me a site (on her family home land) and is open to me selling it , is the capital gains tax only due on profit made in the difference between valuation and what it sells for? Say it is valued at 200k and sells for €240k , is cgt only payable on the 40k or the full 200k?

It is valued under the threshold for for €335k gift/ inheritance allowance
 
Sorry, the €200k would be less the initial cost, so the taxable figure would be less.
But there is a CGT liability for your mother on the gain.
 
Mother owns field.

Mother makes a gift to son of site valued at 200k.

The mother may have a CGT liability, depending on the original base cost.


The son does not have a CAT liability, as the 200k site value is below the lifetime CAT allowance in category A. This is assuming the son has not received any gifts already.


Later, the son sells the site for 240k.

The son may have a CGT liability on the 40k gain.


How long between gift and sale of site?


I think other posters on AAM may have more detailed, specific answers than mine.

It strikes me that there is enough complexity here to maybe justify getting professional advice?
 
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There is a CGT relief for the parent on the transfer of a site by the parent to child if the child builds a house on it (lots of T&C to comply with).
If the child then sells the site instead of building on it, the CGT initially relieved for the parent is payable by the child.

See here:

Transfer of a site from a parent to a child

This page details CGT relief on the transfer of a site from a parent to a child
www.revenue.ie www.revenue.ie
 
T McGibney said:
Untrue and probably highly misleading.
Click to expand...
It could of course be true.
E.G. The site is from a farm bought over 20 years ago. 100 acre farm bought for €3k an acre in 2002.
Base cost for third acre site €1k.
Its also clear to me that the OP is checking to see if there would be ANY CGT liability for his mother in what he outlines.
 
T McGibney said:
We simply do not have enough information to even start any attempt to calculate a possible CGT exposure here.
Click to expand...
Of course we can start with the €200k figure less deductions.
Obviously much more information, e.g. possible indexation, is needed.
 
charlie007 said:
It could of course be true.
E.G. The site is from a farm bought over 20 years ago. 100 acre farm bought for €3k an acre in 2002.
Base cost for third acre site €1k.
Its also clear to me that the OP is checking to see if there would be ANY CGT liability for his mother in what he outlines.
Click to expand...
Where were 100-acre arable land farms going for €3k an acre in 2002?

charlie007 said:
E.G. The site is from a farm bought over 20 years ago. 100 acre farm bought for €3k an acre in 2002.
Base cost for third acre site €1k.
Click to expand...
That's not how part-disposal works.

Why just shoot in the dark here, potentially misleading the OP?
 
charlie007 said:
Nobody mentioned it was arable land,
Click to expand...
It will have to be arable, or otherwise very valuable, land if the owner is considering valuing a site on it at €200,000.
louella85 said:
If my mother gifts me a site (on her family home land) and is open to me selling it , is the capital gains tax only due on profit made in the difference between valuation and what it sells for? Say it is valued at 200k and sells for €240k , is cgt only payable on the 40k or the full 200k?

It is valued under the threshold for for €335k gift/ inheritance allowance
Click to expand...

charlie007 said:
me thinks we're straying from the question:)
Click to expand...
speak for yourself :cool:
 
T McGibney said:
Where were 100-acre arable land farms going for €3k an acre in 2002?


That's not how part-disposal works.

Why just shoot in the dark here, potentially misleading the OP?
Click to expand...
Then explain how it works.
As I've already said, the OP main enquiry was would there be a CGT liability for his mother and its clear enough to me there would.
 
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