Gift of land from uncle

[Kevin Byrne]

My uncle is gifting me a site on which to build a house. I have been hearing a lot of conflicting information on how this process works and would like to clarify what the tax implications are for this.

I am aware that I will need to get the site valued as part of a mortgage application. If this value is under the threshold of €30,150 as Group B gift tax do I only pay stamp duty on the valuation? Does my uncle also have to pay anything to revenue for disposal of the asset. I have heard people say he may have to pay cgt on the difference between the value the land when he received it and the value put on it by the assessor!!.

Any information or a pointer to a good resource for this specific query would be great.

 

[Vanilla]

Three potential taxes on this transaction:

1. Stamp duty-you pay this- there will be stamp duty which is assessed on the value of the land.
2. CAT or gift tax- again, you pay this-you have a threshold of 30150 to take from an uncle so, assuming you have not received any other gifts which have used up part of that threshold in the past, if the land is valued under that, no tax, but any part above that figure is taxable at 30%.
3.CGT or capital gains tax- this is a potential tax for your uncle. He would have to consult his own tax advisor about this. There are some reliefs available depending on the circumstances.

For a resource to read more, have a look at the revenue.ie website about each tax, or better still, consult a tax advisor who will be able to advise on the specific circumstances.