Site Stamp Duty - Parent to child question

[deadl0ck]

Hi all,
I am getting a site from my fater to build (50K value).

My Dad has signed over the site to me with the solicitor, but it's currently with the Land Registry to complete the transfer, and I'm anxoius to start building.

I have been advised that the site must be in my name before I start building on it, or I could be liable for Stamp Duty.

Is this correct, and if so, can anyone shed more light on the reason for this ?

Thanks all !!

 

[Apollo]

I don't think you could build in the first place without your name being on the title of the site so by default SD wouldn't be liable. Talk to your solicitor though to be sure.

 

[bakerbhoy]

You can build on the site without the transfer having taken place. When you apply/applied for planning, all you need is the consent of the landowner to apply for pp.
The transfer ,in your case a gift from a parent , is still liabale for stamp duty but at half the rate applicable.Also if the planning authority impose restrictions/conditions on your permission ie living in the house for a certain period before you could sell it, the valuer can put a lower value on the site for this same reason,thus reducing your duty further.
This is what is happening in my case,my house is nearly finish and the transfer has yet to go through although it is being processed.

 

[juke]

Hi all,
My Dad has signed over the site to me with the solicitor, but it's currently with the Land Registry to complete the transfer, and I'm anxoius to start building.

Op - from what you say, the transfer is complete - it's only the registration in the land registry that's not finished. This can take years. Once the transfer papers have been signed by your father (and you) and stamped (more than likely exempt from stamp duty) in the revenue commissioners, it 's ok.

 

[deadl0ck]

bakerbhoy - you said:

The transfer ,in your case a gift from a parent , is still liabale for stamp duty but at half the rate applicable

There is No stamp duty applicable in my case (and shouldn't be in your case either for a standard site). This is from the revenue site [broken link removed]:

3.The transfer of a site from a parent to child is exempt from stamp duty where the site transfer is for the purpose of constructing a house which will be the child’s main residence. The value of the site must not exceed €254,000 and the area must be less than .4047 hectare (1 acre) exclusive of the area occupied by the house itself.

I'm just wondering why the site needs to be in my name before I can start the build....

Juke - thanks for the info - it looks like I may be able to proceed so, but I'll double check with solicitor....

 

[deadl0ck]

Actually - the figures were changed in the last budget:

The transfer of a site from a parent to child is exempt from stamp duty where the site transfer is for the purpose of constructing a house which will be the child’s main residence. Budget 2008 provided for an increase in the threshold for the value of the site transferring from €254,000 to €500,000 for deeds executed on or after 5 December 2007. The area of the site must be less than .4047 hectare (1 acre) exclusive of the area occupied by the house itself.