stamp duty on gifted site over 254,000

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chico_d

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Hi,

Just wondering if anyone knows if a gifted site, parent to child, is valued over the 254,000 threshold, do you pay stamp duty on the amount goin over this or will it be on the whole lot? for example if site is valued at 300,000 do you pay it on the 56,000? also is the rate 20% or is it 9%?

Im a bit confused on this issue?

thanks!
 
Stamp duty will apply to the full amount.

CGT/ CAT will also apply. If the exemption threshold is exceed i.e 250,000 for gift of site by parent
 
God im a bit worried now. Does anyone know a rough estimate of a a site of .04 of an acre with FPP for 3 bed detached in cabinteely area of dublin??? would it go over the 254,000 does anyone know roughly? or has anyone had land in this area valued?
 
€254,000 would strike me as low for any kind of site in Dublin.

The CAT threshold for parent-child gifts is currently €478,155.

Note that if stamp duty applies, it will at half the normal rate (Consanguinity relief).

The rate of stamp duty will be the same as the rate charge on residential property, as the site has planning permission.
 
Hi Ccovich,

I never heard that about if a site has plannin permission on it the stamp duty is payable on the residential rates. Does this mean that if you transfered a site woth pp into your name worth say €80k that it would be stamp duty free as its under €127k rather than paying the full 5% for non residential rate?
Where can i find more out about this?
 
It's all in the [broken link removed]

Where an individual purchases a site in connection with, or as part of, an arrangement to build a house or apartment on that site then stamp duty will be charged, subject to the reliefs referred to above, based on the aggregate amount of the site cost and the building cost at the appropriate residential property rate.
Click to expand...

Technically, maybe FPP does not confer such an arrangement, but if a parent gifts a child a site with the intention of the building a house, I would imagine that it would be chargeable at residential rates.
 
Stamp duty will be on market value of site at non residential rate- the combined situation ( site plus agreement to build) is really to do with all in one transactions i.e. you are buying a site from someone and that person is going to build the house e.g. a new development.

I agree that the wording of the Revenue Guide is not clear in this regard.

mf
 
thanks, ccovich. Does that mean if the MV of the land is less than 478 threshold then no stamp duty needs to be paid if building PPR and site is gifted? Or am i reading this wrong??
 
mf1 said:
Stamp duty will be on market value of site at non residential rate- the combined situation ( site plus agreement to build) is really to do with all in one transactions i.e. you are buying a site from someone and that person is going to build the house e.g. a new development.

I agree that the wording of the Revenue Guide is not clear in this regard.

mf
Click to expand...

Aha-thanks for clarifying mf1.
 
okay sorry read that totally wrong. thanks for your help, i just emailed the revenue there to see what the tax payable is likely to be if the land is over that 254,000 threshold.
 
okay have had no luck with the revenue emailed but no reply as yet. I think i have this worked out now. Thanks ccovich i looked at the revenue site and made some sense of it, and didnt realise there was that consanguinity break you said too. So these are my calculations:

approx value of site 350,000 (based on others in the area)
stamp duty @ 7.5%???
Halved due to relief 3.75%

so stamp duty would be E13,125+/- depending on value

And because it will be under the 478,000 CAT cut off there wont be any CAT payable???

Does this sound right anyone?????
 
Stamp duty will be 4.5% ( half of 9 %).

CAT is fine unless you have had previous gifts or inheritances which push you above the threshold.

The donor will have to check if they have a CGT liability.
 
AS the site exceed the €250,000. CGT may be payable by parents on transfer.
 
ok thanks arch and vanilla. I dont know how to check the CGT payable on this? Im getting really stressed about all this, from wht ive read on the revenue website the CGT will be payable at 20%, will this be on the value of the land? I just find the revenue site very confusing??

I dont understand why CGT has to be paid if his dad is not making any gain on this? this whole issue i find is ridiculous. The limit on 'gift' hasnt been updated in 4 years, and is unrealistic for 2006. The land is being valued this week, and if it comes back at say 300,000 then there will be 60,000 cgt to pay and SD on top of this??? Does anyone know of any exemptions to this, the revenue never got back to me??? It looks like we wont be able to build at all because we cant afford to pay an extra 80,000 for tax on top of the cost of build it exceeds our mortgage limit. Its just so frustrating because we are FTB's and the house is under 125 sqm, the land is being gifted and there is no gain!!!!! Sorry for the rant i just feel really hard done by one this!!!!!
 
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