gift of site, but i dont want to build, tax implications?

[moreconfused]

My parents gave me a site in 2006, specifically to build my family home on. They didnt have to pay CGT this way.

However I have a family home and don’t want to move. Do I have to pay my CAT plus my parents CGT now? Or can I “transfer an interest to my spouse” as it says in CGT guidelines section 6 from the revenue? Will this be tax free? Or will someone have to pay tax somewhere along the line eg if i gift it to a child of my own. My parents are stubborn and don’t want to talk about it anymore.

I dont mind paying a professional but I don’t know if it’s an accountant, solicitor or tax adviser I need. The one quote I did for professional advice was way out of my budget.
Thanks for any advice or point me in the right direction.

 

[Joe_90]

Page 16 http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf

The parents avoid CGT on the disposal. The gift uses the child's CAT threshold.

The relief is clawed back if the child disposes of the site with occupying it as their PPR for 3 years. Gifts to spouses don't trigger a clawback as it would not be unusual for a financial institution to require joint ownership.

 

[moreconfused]

Thanks Joe_90. Im very cautious though, it seems nearly too easy to be true. Do I need to give it, sell it or just make himself co-owner? Or does it really matter? Is that the end of the tax then for this transfer (we might give it to one of our kids later on). My father doesn’t have to pay CGT, and we don’t have to pay CAT? Someone I'd normally trust to know these things insisted I'd have bundles of tax to pay because I’m not making the site my PPR, they seemed so sure.

 

[Joe_90]

The transfer to a spouse does not give rise to a claw back but the child/spouse will still need to occupy the property for 3 years otherwise the parents CGT will have to be paid.

 

[moreconfused]

Thanks again Joe_90.

So to check I have this straight - if I don’t build and move in we pay CGT and CAT. If I give to my hubby but we don’t build and move, CGT only is required to be paid. The only way to avoid tax is to build and move in. I wonder what would be the case if we wanted to build and move in but we could not get planning permission.

As the transfer was before 2008, presumably the CGT would be at 20%. Are there any time rules governing when this is to be paid by? What if I change my mind and want to build and move in another 20 years what happens?