Inheriting Land

[sman]

I have been offered a site to build on by my father. However, is it possible for him to give me a full field (approx 5 acres) and for me to build on a site and own the rest of the field for future use. (either to sell in future years or to pass sites on to my children at some stage).

What are the pitfalls in doing this? What costs can i expect?

 

[asdfg]

The full five acre field or whatever size you are being gifted will have to be valued. If the value is less than 483K then there should be no tax payable now. The value of the field will be added to any future gifts inheritance from your parents and if over the limit taxed accordingly. This value will then be used as the starting point for future transactions involving the site/field.

Your father will almost certainly have some liability to CGT.
AFAIA, the land is valued at 1974 prices if held prior to 1974. If it was given to him after 1974 then that is the date that the land is valued from and [broken link removed] accordingly. The difference between the market value and the indexed value is taxable at 20% less expenses.
I'm sure there are additional refiefs available on the transfer of land to family members that I'm not aware of.

You really should get professional advise on all aspects of the transaction.

This is from the Revenues web site -

Site transfers from parent to child​

Stamp Duty and Capital Gains Tax do not apply where a parent transfers a site to a child. The site must be for the construction of the child's principal private residence and the market value of the site must not
greater than 253,947.62 euro. A parent can only transfer one site to each child to take advantage of this exemption. If the child then sells the site without the principal private residence being built and lived in for
3 years, there will be a clawback of the capital gains tax relief permitted. There will be no clawback if the child dies.​