Hi,
I am having difficulty getting clarification as to the following situation.
My parents are about to gift to me land in which I have been granted planning permission for a single one-off house. The area of the site is 1.3 acres and the planning permission granted is for the entire 1.3 acres.
We recently became aware of the 1 acre threshold for CGT so we are about to spilt the site into 2 separate folios i.e. 1 acre and 0.3 acres and I be gifted just the 1 acre folio. The 0.3 acres portion is a hill of granite rock that is landlocked and has no real value (i.e. €2,000). The plan is that I am gifted the 1 acre site and then I separately purchase the 0.3 acres directly from my parents and my parents pay whatever CGT on this.
The bank is fine with this from a mortgage perspective but I am wondering if there is any issue with taking this approach from a revenue perspective? The fact that I am being gifted 1 acre and then purchasing the adjacent 0.3 acres does this have any cumulative trigger in terms of CGT in the eyes of Revenue in which my parents could be forced to pay CGT on the entire 1.3 acres?
For reference, my parents bought the site 40 years ago for very little in todays' money.
Any advice would be much appreciated.
Regards,
Niall
I am having difficulty getting clarification as to the following situation.
My parents are about to gift to me land in which I have been granted planning permission for a single one-off house. The area of the site is 1.3 acres and the planning permission granted is for the entire 1.3 acres.
We recently became aware of the 1 acre threshold for CGT so we are about to spilt the site into 2 separate folios i.e. 1 acre and 0.3 acres and I be gifted just the 1 acre folio. The 0.3 acres portion is a hill of granite rock that is landlocked and has no real value (i.e. €2,000). The plan is that I am gifted the 1 acre site and then I separately purchase the 0.3 acres directly from my parents and my parents pay whatever CGT on this.
The bank is fine with this from a mortgage perspective but I am wondering if there is any issue with taking this approach from a revenue perspective? The fact that I am being gifted 1 acre and then purchasing the adjacent 0.3 acres does this have any cumulative trigger in terms of CGT in the eyes of Revenue in which my parents could be forced to pay CGT on the entire 1.3 acres?
For reference, my parents bought the site 40 years ago for very little in todays' money.
Any advice would be much appreciated.
Regards,
Niall