Transfer of site larger than 1 acre from father->son:Stamp duty implication question

C

Chuckey

Registered User
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Hi all,

I'm in the process of receiving a site from my father.
It is the first (and only) site that will be transferred to me.
The value of the site is relatively low, let's say 40,000, well below the 500,000 threshold.
The site is 0.7 Hectares.
The solicitor handling the transfer has suggested that stamp duty may be owed, as the site exceeds the Revenue size limit of 1 acre.
Is he correct? and if so, how would this stamp duty owed be calculated?

Thanks,
C.
 
Re: Transfer of site larger than 1 acre from father->son:Stamp duty implication quest

As far as I'm aware, you are allowe to transfer 1 acre plus the ground area or footprint of the house. 0.7 hectares is roughly equal to 1.7 acres, presumably this is more than this. Why not just transfer the acre, get it surveyed and drawn on the maps? If it is a self contained field, even if your father is selling land, the remainder of the field could be kept in his ownership.
 
Re: Transfer of site larger than 1 acre from father->son:Stamp duty implication quest

Thanks baldyman27. Unfortunately, it has to be transferred as one parcel.

Does anyone know how I can calculate what stamp duty, if any is payable for this transaction? I looked at the Revenue site, but can't find the specific information.

C.
 
Re: Transfer of site larger than 1 acre from father->son:Stamp duty implication quest

Chuckey said:
Thanks baldyman27. Unfortunately, it has to be transferred as one parcel.

Does anyone know how I can calculate what stamp duty, if any is payable for this transaction? I looked at the Revenue site, but can't find the specific information.

C.
Click to expand...

It doesn't have to be transferred as one parcel. Two deeds of transfer ( one for the exempt site, one for the non-exempt additional ground) will somewhat increase your legal costs, but will minimise your stamp duty. Both can be presented for stamping at the same time - there is nothing hooky about it. I have done this before.
 
Re: Transfer of site larger than 1 acre from father->son:Stamp duty implication quest

under the stamp duty consolidation act 1999 section 81B the transfer or lease of a site to a child the purpose of which is for the child to build there own home the market value of the site must not exceed €254,000, the exemption is subject to a number of conditions and applies to instruments executed on or after 6th December 2000.
 
Re: Transfer of site larger than 1 acre from father->son:Stamp duty implication quest

Thanks Ants09. The site value will not definately not exceed the threshold - be it 254,000 or 500,000.
 
Re: Transfer of site larger than 1 acre from father->son:Stamp duty implication quest

Would agree with MOB - do it as two transfers. One for the exempt and one for the remaining portion. You mention the over all value of the site is 40k therefore (theoretically) the .7 acres is worth €16,500 - what i would suggest is that you have the .7 acres valued proportionaltely less than the 1 acre. Esentially ensure that the value is less than €10k (no stamp duty below this amount)

there will be legal and capital gains tax to pay though
 
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