CAT on gift of site to son

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funcrusher

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Searching this forum throws up contradictory assertions that a gift to a son receiving a site is/isn't exempt from CAT - asuming it complies with the conditions for CGT exemption.

Many thanks in advance to anybody who can quote the definitive law on this point, and any relevant 'loopholes'.
 
I did a voluntary transfer (ie, the son didn't pay for it) of a site from father to son recently (I'm only an apprentice, though). Value of the site was around €80k. No CAT payable. But that €80k will be added to any future gifts that son may receive from his folks, or any bequests on his parents' death. Children can take almost €500k CAT-free at the moment (I forget the exact figure).

This is not exactly a definitive answer for you, but hope it helps.
 
So you are saying it is NOT exempt - it counts towards the CAT pot. If you are right it seems peculiar - because you can give him a whole house CAT-exempt if he has lived in it for 3 years.
 
LouisLaLoupe is wrong.

Provided a site is provided from a parent to a child, is not more than an acre and valued at no more than €254k, it is exempt from CGT and stamp duty.
 
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With regard to the pot if nothing has been given to date then tomorrow a gift under the threshold is exempt. When he inherits a futher €X to take him over the threshold then the excess will be taxed. If he never inherits more than the threshold then it will always remain exempt.

There are different rules for homes, agricultural land etc.

As opposed to a home (which they have to have lived in for 3 years, and continue living in for 6 (i think) you are giving a site with which anything could be done. It's not peculiar just different treatment for different assets.
 
Nige said:
LouisLaLoupe is wrong.

Provided a site is provided from a parent to a child, is not more than an acre and valued at no more than €254k, it is exempt from CAT, CGT and stamp duty.
Click to expand...

So CGT for the parent and stamp for the child kick in when either the value and/or size are greater than 1acre and/or €254k? While there is still room for it being CAT exempt... innit?
 
Stifster said:
Disregarding CGT and Stamp Duty, you can still go to the threshold and be free of CAT.
Click to expand...

I apologise. I was wrong, there is no CAT exemption on the transfer of a site to a child.

It therefore erodes the CAT threshold by the value of the site on the date of transfer (less the €3,000 small gift exemption). It is therefore best if a site can be transferred before planning permission is granted.
 
Just in case other readers become confused: I'm pretty sure the son is not allowed "to do anything" with the site - there are retention conditions imposed by the RevenueCommissioners I think.
 
Yes funcrusher -

The purpose of the transfer is that the son builds a house on the site and lives in it as his principal residence - so if he builds and then sells, there would be clawback on the stamp duty and CGT
 
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