Tax Implications of Land Swap

[manaboutdog]

Hi There,

Not sure if this is the most appropriate forum for this question, but I couldn't see anything that dealt with it directly.

Myself and a neighbour are interested in swapping two small patches of land, it would be convenient for both of us to own the other's patch. The two pieces would be pretty close to each other in terms of value so there would be little or no money changing hands. And we would both be as well off after the deal as before it in monetary terms.

Does anyone know What the implications are in terms of Stamp Duty and possibly CGT?

Thanks in Advance,

M

 

[Setanta12]

There are Stamp Duty reliefs for swopping land but I'm a while out of the area so perhaps another poster can help.

As regards CGT, I would imagine that both could fall within this. Both would have to use the value of the other against the acquisition cost of their own portion and any excess, allowing for indexation, would fall liable to CGT.

 

[laragh]

There is a relief available from stamp duty for swapping land - its called Farm Consolidation Relief.
The revenue guidelines on the relief can be downloaded here http://www.revenue.ie/en/tax/stamp-duty/leaflets/sd81c-farm-consolidation-relief.pdf

As the name suggests it is only relevant if both parties are farmers and there a number of other conditions as you will see from the guidelines.

As regards CGT- there is no relief on land swaps and wheteher or not tax will be liable will depend on the value sof the land involved when they were acquired and when they are eventually exchanged.