SiteTransfer from Parents & CGT

[lucylu]

My Parents have transferred a site to me and my Partner, we have got FPP on the site with 3 year occupancy clause on it and the site is valued at €25000.
we would like to sort out the CGT for my parents as soon as possible, Both parents are over 55, they inherited the land themselves in Dec 96 /Jan 97 the site value in '96 was approx irl5000.They have always currently rent out their land to a relation for agri purposes.
We have paid our county council "development contributions", can we claim that as an expense for the site off this amount.?
We are having trouble trying to find the relevant info regarding the tax amount payable. is paying €3-4k correct or is there any way to get it lower
www.revenue.ie is a waste of space on the information highway!
Any help is much appreciated

 

[mf1]

We have paid our county council "development contributions", can we claim that as an expense for the site off this amount.?


I think that the CGT is payable by the parents on the gain attributable to the site. The fact that you are now developing is not of any great significance.

The figure you quoted looks in or around the ball park figure due but I reckon it is still worth getting proper professional advice from their accountant.

mf

 

[InfoSeeker]

I would have thought that ur partner is subject to CAT as he is receiving a gift from a stranger.

The amount is below the threshold but you will probably have to document this on some Form.

 

[Winnie]

As far as I am aware in order to qualify for the 'Disposal of site to Child' Relief the site has to be t/f to just you (ie. not your partner).

If the site was t/f to you and valued at less than €254k then no CGT or Stamp Duty is payable provided you build a house for yourself & live in it for a minimum of 3 years.

I am looking into this at the moment because I am trying to minimise the valuation of the site so would make sense to t/f before we get pp however if we don't get pp then we are left with a useless site so not sure what to do - I know that we will qualify for the above relief but I think that the value will use some of my CAT allowance (441k) up & just in case get more t/fs to me want to minimise this.