CGT on sale of a site to Brother

[Darth Vader]

If I bought 8 acres with my house back in 1999 for £90,000 and am now selling a site to my Bother for €35,000 (well below market value). Where does this leave me on CGT? Is CGT the only thing I have to look at Tax-wise in this senario?

 

[mf1]

I think that CGT will be payable by you on the market value rather than on the sale price. Brother will have stamp duty on market value of site and he may also have a CAT liability - again based on the market value of the site. Suggest tax advice for you both to clarify issues before going any further.

mf

 

[GJPC]

Yes - CGT will be 20% on market value less 1270 and fees. Go to revenue.ie, forms and leaflets. Your brother may also have gift tax.

 

[Ned_ie]

CGT will be calculated based on the MARKET VALUE of the site being disposed of less a portion of the original cost (and the €1270). This is calcuilated using a part disposal formula which is available on the revenue website.

Stamp duty will also have to be paid but the rate of stamp duty is halved due ot consanguinity relief (i.e. blood relative relief)

Gift tax may also be payable based on the difference between the market vlaue of the site and the amount being paid. If this difference is less than €47,815 and your brother has not received any substantial gift from any other relative (except parents) then it may be possible that no CAT is payable on the transaction.