purchaseing land subject to planning / stamp duty / gift tax /

[house]

Hi All,

I have a number of probably stupid questions that I hope you guys can help me on.
I’m hoping to self-build my own house on my Uncle’s land, my parents want to buy the land off my Uncle and give it to me as a gift. Its currently agricultural land without any planning on it, and it will only be purchased subject to planning, however my good Uncle is only going to charge agricultural rate for it.
I foolishly bought an apartment in Turkey (€50k paid to date, but construction is stopped and the contractors are talking about going to into liquidation leaving me and the other investors with an unfinished building site)

The questions I have are follows;

1) How does stamp duty affect me as I’m going the self build route and it’s my 2nd property? Does this half finished apartment affect my first time buyer status
2) When my parents purchase the land will the stamp duty be calculated on the land cost or value (we only want to purchase subject to planning
3) How is gift tax calculated as I won’t be getting any capital gains on the land as I intend to live in this house i.e I won’t be selling or renting it?
4) Finally when I’m applying for planning permission do I have to have a contract/ agreement in place with my Uncle showing that if permission is granted he will sell the site?

All replies appreciated.
House

 

[secman]

1. This will be your first property as you have not concluded the first property transaction. You will pay stamp duty on the cost of the site, but Revenue will insist on this being " an arms lenght transaction". Namely the stamp duty should be paid on the market value of site bearing in mind it is ultimately being purchased for development purposes. But if site is valued at €60k say in todays market, stamp duty is 5% = €3k ( stand corrected here on rate, just going on memory here)
Again revenue may insist on Gift tax being based on current market value, but there will be a threshhold here for parent to son.
Its always advisable to put a contract "subject to obtaining planning " in place.


Secman