self-build on parents' land

[funcrusher]

My son is UK domiciled and moved to Ireland where he has commenced building a house for his family residence on land where we (parents) have retired. At the moment nothing has been done regarding a legal transfer of the site to him. This is due to laziness plus the fact that he doesn't need a mortgage to finance it. Can anyone indicate what action should be taken in the light of whatever tax implications there might be? Also, are there any peculiat VAT/stamp duty implications for him? (The house will be his permanent residence and unlikely to be sold in the foreseeable future).

 

[neady]

Hi, I was in a similar situation myself. I did not have to pay any VAT/Tax because the folks signed the site over to me (changed name on Land Registry, which you need a solicitor to do). Can't remember the in's and out's of it but it has something to do with living on family land which makes it exempt.

 

[Domo]

With regard to CGT - no gain accrues for land with a market value of €254,000 (need to check current rates) by transfer from a parent to a child to construct a dwelling. There are several conditions for this relief:

Must be for child's only or main residence
Must be held for 3 years

The above is a brief summary of position.

You will need to get professioanl advice in this regard. Feel free to contact me.