blanketyblank
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If your parent transfers a site to you and they don't want any money for it, what are the costs involved in doing this? The site would be slightly over half an acre.
Thanks
Thanks
site costs query
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Assuming it's for you to build a house for you to live in as your only or main residence.
Capital Gains Tax exempt for your parents. However, there's a clawback if you don't build a house, or if you sell it within a certain time period. It's you that is liable for the clawback if it arises (see link below).
You'll need a solicitor to do conveyancing. Shop around, you'll need a solicitor also if you need a mortgage to build, so factor it all in when asking around. I don't think parents would have to get their own solicitor as it isn't a house, but would need to sign a confirmation that they received independent legal advice. Your solicitor will confirm, as the rules might have changed on this.
Assuming site isn't already on it's own folio, you will need an engineer / architect to draw a boundary map for land registry, but that's straight forward - get whoever is doing your planning applications to do it, the same maps should do, and you'll keep costs down. There'll be land registry fees, but your solicitor will have details, and should include as 3rd party costs when you ask for a quote. It's a while since I saw one, but I think the conveyancing costs were around 750 from memory.
As there's no house, you'll pay 7.5% stamp duty on the market value. But you can claim a rebate of 2/3 once the house is built. You will need a valuer to do a valuation for stamp duty purposes. Depending on where you live, I think this would cost about 150 euro.
Re CGT relief:
www.revenue.ie
Capital Gains Tax exempt for your parents. However, there's a clawback if you don't build a house, or if you sell it within a certain time period. It's you that is liable for the clawback if it arises (see link below).
You'll need a solicitor to do conveyancing. Shop around, you'll need a solicitor also if you need a mortgage to build, so factor it all in when asking around. I don't think parents would have to get their own solicitor as it isn't a house, but would need to sign a confirmation that they received independent legal advice. Your solicitor will confirm, as the rules might have changed on this.
Assuming site isn't already on it's own folio, you will need an engineer / architect to draw a boundary map for land registry, but that's straight forward - get whoever is doing your planning applications to do it, the same maps should do, and you'll keep costs down. There'll be land registry fees, but your solicitor will have details, and should include as 3rd party costs when you ask for a quote. It's a while since I saw one, but I think the conveyancing costs were around 750 from memory.
As there's no house, you'll pay 7.5% stamp duty on the market value. But you can claim a rebate of 2/3 once the house is built. You will need a valuer to do a valuation for stamp duty purposes. Depending on where you live, I think this would cost about 150 euro.
Re CGT relief:
Transfer of a site from a parent to a child
This page details CGT relief on the transfer of a site from a parent to a child
www.revenue.ie
blanketyblank
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thanks very much for your reply, youve really covered everything
No problem. It's a while since I looked at one, so hopefully I didn't miss anything there.thanks very much for your reply, youve really covered everything
The only other thing is I'm assuming that there's no mortgage outstanding for the parents. If there is, you need the bank to agree to release charge in the site. I've never seen one if those first hand.
It'd be great if you update when you go through the process if I've missed anything. It might prove useful to others in future.
Best of luck.
Hi apologies for jumping in here but I am wondering could you help? I have the chance to be gifted a site of approx 0.5 acre from my parents, planning permission wont be sent in for another while. I am not married and would ideally like to have my partner's name included on the site as we will be looking to raise the mortgage as a joint application. As there is no planning on the site yet would it be an option for us to purchase the site at agricultural land value now prior to planning being granted? Is this acceptable or could lead to problems with Revenue later on? Or are there any options open to having both names on the site without a huge tax bill?
Why not simplify your life and get married? Maybe be a bit more romantic than that with the proposal though.
Your situation isn't unique, the way around it is what banks call a 'joint mortgage sole title' application. I'm not sure if every lender does it, but some do. BOI and Haven/EBS both do as a start for self builds.
You could buy it, but it's hard to justify buying just half an acre and saying there isn't site potential in it, so you're potentially inviting trouble down the line.
Edit: If you go down the 'sole title' route, you will need advice from your solicitor on the implications of this.
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