Stamp Duty on Land and Build for ftb

Hi,

I've read a few old posts on this but need to be 100% sure I am correct. My brother and his girlfriend are buying land from her father for €30,000. They are going to build on this land and are first time buyers.

Am I correct in saying that they pay 6% stamp duty on the land and no stamp duty needs to be paid on the build? In other words apart from the land do the same conditions apply to them as first time buyers as a normal first time buyer?

Thanks

Why wouldnt they just build on the land and pay her father 30k after the build for the house and land. No Stamp Duty.

Interesting idea! They would need to have a lot of trust in her father though and he is the kinda guy that is charging his daughter 30grand for land to build her home even though he has over 60 acres which he inherited and really should be passing onto her. The guy isn't short on money either. Never trust a greedy man I say!

Firstly, no one pays stamp duty on a self build.

Secondly, if the mortgage providers and your brother are agreeable to it, stamp duty on the site can be avoided if the girlfriend's father transfers the site to his daughter only, provided the site is less than an acre in size and worth less than 254k.

I'm assuming this is a total wind up?

Is there such a thing as a site valued at 30K anymore? And why precisely should a boyfriend of a daughter of a land owner seek to benefit from the landowners fortune? And does the daughter have a genuine expectation of being left this land? And who is greedy?
And anyway, building on land you don't own is beyond stupid and since Revenue are unlikely to accept that the father is building the house and selling the land as part of a related contarct..................

mf

Is there such a thing as a site valued at 30K anymore?
No I agree that it's a good price, but if he inherited the land from his family through the generations any decent soul would give his daugther a small acre of land to build a home on. Or do I really live in that pathetic a Country now? Maybe I do.

And why precisely should a boyfriend of a daughter of a land owner seek to benefit from the landowners fortune?
As above.

And does the daughter have a genuine expectation of being left this land?
I believe so.

And who is greedy?
The father :-/



Nige, your post is interesting. Any idea what the lgeal issue are with the land being in one name but the house built on it being in both their names?

Once the house is built and designated as freehold, if the Dad sells it for 30k it includes the ground its on and the house.

slinky said:

Once the house is built and designated as freehold, if the Dad sells it for 30k it includes the ground its on and the house.

Click to expand...

Absolute nonsense. Stamp duty would be payable on the market value ( not 30K) of the site and the house unless it was a transaction at arms length i.e. there was a genuine situation where purchasers were buying from a builder who owned the land.

mf

Now that is absolute nonsense!!!!

Market Value!!! So how does one person on a street pay 400k and therefore Stampduty on the 275k and another buys the house for 350k and pays stampy duty on 225k???

Nothing to do with market value and everything to do with how much you buy the house for.

The Revenue do not dictate the price of property the buyer and seller does.

Her Dad would also not get hit for Capital Gains as it is below the Threshold. Everyone wins.

The only reason people aren't doing this all the time, is because no one sells a house for 30k only the rich old farmer families.

I can name one family on Sugarloaf who have all gotten houses in this manner.

Nige said:

Firstly, no one pays stamp duty on a self build.

Secondly, if the mortgage providers and your brother are agreeable to it, stamp duty on the site can be avoided if the girlfriend's father transfers the site to his daughter only, provided the site is less than an acre in size and worth less than 254k.

Click to expand...

Are you sure about this - I had a 1.3 acre site transfered to me by my father. My solr told me that I owed nothing as the value was less than a certain value - this was in 2007.

If I was to sell the site then my and my father would be subject to some kind of tax.

Becky you are correct. If a parent gives land to you and you live on it all well and good. However if you sell it, you will be subject to capital gains unless you use the proceeds to buy another house. Your father wouldn't be liable for any tax only you as the landowner.

thanks slinkly - what got my heart racing there was when you said the site needed to be less than an acre. 1/2 acre would have done me cos I'm not a gardener but my dad just divided a field by 3 so we all ended up getting 1.3 acres.

"The Revenue do not dictate the price of property the buyer and seller does."
Slinky - go read up on Stamp Duty. I'm assuming you're just having a laugh. Go troll elsewhere.

mf

Becky

This is an extract from Revenue leaflet SD10A. I acre is the limit.



Transfer of site from parent to child
Section 83A of the Stamp Duties Consolidation Act 1999 provides for an exemption from stamp duty on the transfer of a site (of less than .4047 hectare (1 acre)) from a parent to a child for the purposes of that child building their principal place of residence. It applies to instruments executed on or after 6 December 2000 and adjudication is required. The requirements for the exemption are included in the wording of the certificate to be endorsed in the instrument as set out at certificate No.9 in Table 4. In addition, certificate No. 3A or No. 3B in Table 4 as appropriate should be endorsed in the instrument.

This relief has been extended, for instruments executed on or after 31 March 2006, to allow a foster child to avail of the exemption. A foster child is a person who meets the conditions set out in the definition of “child” in section 1 of the Stamp Duties Consolidation Act 1999.

Under Budget 2008, the threshold for the site value in relation to this relief has been increased from €254,000 to €500,000 for instruments executed on or after 5 December 2007.

Thanks mf1 - seems I owe some money so.

Dont accuse me of trolling just because your highlighted as being inacurate. I wont be entering into personal discussion as my busy time is given to those who deserve it.

Anyway Becky my advice is that you chat with your financial broker.

slinky - I don't have a financial advisor.

I need to check my deeds and the date of transfer - it was either 2007 or 2006. If I owe it I owe it.

ok, ill just throw this in here too, the site when its valued ,, will be considerably less with no PP, otherwise its just a field