Site handover before planning application?

B

bartbridge

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Myself and my OH are lucky enough to have been given a site to build on by my OH's father. Does it make any difference if the site is signed over before we apply for planning?
 
No difference for the council
The only issue is if you are unable to obtain planning permission for what ever reason, you will have gone to the expense (Solicitor etc) of getting the site in you name that is no good to you.

Would you then have to sign the land back to the family and get any other site and got through the process again?

Perhaps better to wait until you get planning permission
 
I agree with the above. You dont have to own it in order to apply for planning - the most you will have to do is to get a letter from your father in law confirming that he has consented to you applying for the PP on that portion of land
 
The site will be worth a lot more with planning permission, so there may be tax implications. Your solicitor should be able to advise.
Leo
 
Leo said:
The site will be worth a lot more with planning permission, so there may be tax implications. Your solicitor should be able to advise.
Leo
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This would not normally be the case as most sites are sold subject to planning being granted so would be valued as if they had planning. From what I understand of the process when transferring land for the purposes of building on it, one has to value it as building land.

We transferred land recently and were advised to transfer it after the planning was granted for the reasons stated above.

Aside: I think to avoid paying stamp duty the site must be under something like one acre and valued at less than €250k (not 100% on the exact figures but they're in the ball park). The section relating to the amount of land was brought in under the new finance act.

Advice: Employ a solicitor and an arch/eng before doing anything.
 
In this case the OP said they had been 'given' a site, so capital acquisitions (under the guise of gift tax) may come into play.
Leo
 
Again not being an expert (but my bro is a tax accountant) A family member is entitled to inheritance, tax free, to the value of €400k of which the value of the site would be included. If this has been previously exceeded then you have to pay tax on the whole amount or balance or whatever is applicable. must be a family member tho.
 
So if the site is being given as a gift (which it is) to my OH and worth less than €400K then we are not required to pay tax??

Think we'll wait until after we get a planning decision....
 
Aside: I think to avoid paying stamp duty the site must be under something like one acre and valued at less than €250k (not 100% on the exact figures but they're in the ball park). The section relating to the amount of land was brought in under the new finance act.

Is this actually correct that no SD is payable on a site valued less than a particular figure????
 
From once the site is transferred to your OH, there won't be a problem - Problems arise if you want the site on joint names, then you are liable to pay tax on it. I had a site transferred to me after planning - we then went for a mortgage on both names but had to get the site on both names also. I think the bank would not have given mortgage on both names unless the site was in both names. We ended up paying somewhere between 1000 - 2000 in tax I think.
 
bartbridge said:
So if the site is being given as a gift (which it is) to my OH and worth less than €400K then we are not required to pay tax??

Think we'll wait until after we get a planning decision....
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As PaddyH said it isn't very straightforward and problems arise when it comes to selling/remortgaging.

Transfers to OH under the threshold are fine, but if the property is further disposed by OH by putting it into joint names within three years of taking the gift there may be a gift tax liability for you. Defintely a case for the professionals - of course all this depends on the value of the site as a building site.

Edit and if the OH is your wife/husband or not.

Post site value and size and marital status (or plans) and you may get some back of cig calcs.
 
The site is about half an acre, not sure of the value and we're not married. I know of another couple, also not married, the site is in his name (gift from parents), but the mortgage is in both names.

I think they had their solicitor draw up an agreement, which will be void once they marry. It gives the value of the site to him but the value of the house is joint, if they ever go their separate ways and the house is to be sold...
 
bartbridge said:
So if the site is being given as a gift (which it is) to my OH and worth less than €400K then we are not required to pay tax??

Think we'll wait until after we get a planning decision....
Click to expand...
I checked out the details in relation to this and the position is that a landowner may transfer a site up to the value of €254,000 as a gift to one of his sons or daughters for the purpose of building a house. There will be no capital gains tax or stamp duty payable within that limit providing the son/daughter retain ownership of the house for a period of (and I've half forgotten already) 4 years I think?

In this case the site would initially have to be transferred directly to your other/better half. If it was transferred to joint names you would be liable for stamp duty on half of the site value.

The site can be subsequently re registered in joint names
 
We recently went through the same process, although the site was gifted from a non-relative so the gift tax threshold was considerably lower. PaddyH is correct. To avoid tax the site would need to be transferred into your OH's name only, however this could cause problems getting a mortgage. If your lender insists on joint names on the land you'll then be liable for tax.
When we did it we had the land transferred into both names before planning permission. That way the land was valued as agricultural land, keeping it below the gift tax threshold. Before we did this we had 2 architects, 3 planners ( 2 from neighbouring counties, 1 from the local planning office ) and 2 Councillors look at the site. All said there would be no planning issues. That is no guarantee, of course, but it was good enough for us to take the risk.
 
I get ya now, because it wasn't a relative giving ye the site ye were able to put the site in both names, whereas if it's a relative giving the site you would be liable to pay tax if you did the same??

Or am I wrong?
 
bartbridge said:
I get ya now, because it wasn't a relative giving ye the site ye were able to put the site in both names, whereas if it's a relative giving the site you would be liable to pay tax if you did the same??

Or am I wrong?
Click to expand...

See post #13
 
Your Boyfriends Father should sign the site to his son only avoiding any tax as sibling is entitled to a gift of up to €250K i Think. Sure if ye get married it will be yours anyway!
 
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