Stamp duty on transfer of site from parent

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boots

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We are currently in the process of a plot of land being transferred from my parents in law to us, on which we hope to build.
Can anybody confirm if this is treated as residential or non-residential?
If its residential and valued at under 125k then we would pay no stamp duty, if its non-res then stamp duty is payable, afaik.

Can anybody advise?
Thanks,
Boots
 
No, its non-residential. The non-residential threasholds are different. If the site is being put into your name and youor wife, then there will be stamp duty payable and you wont be able to avail of any reliefs as you are not a bllod relative to them
 
Presumably the wife is a blood relative or adopted - how else are they the in-laws?

ONQ.
 
boots said:
We are currently in the process of a plot of land being transferred from my parents in law to us, on which we hope to build.
Can anybody confirm if this is treated as residential or non-residential?
If its residential and valued at under 125k then we would pay no stamp duty, if its non-res then stamp duty is payable, afaik.

Can anybody advise?
Thanks,
Boots
Click to expand...


Boots, Brother in same situation. This is what happened. His in laws transfered the site to his wife. Then, there was another transaction of site between wife and husband. No stamp or CG was payed. You need to talk to a solictor on this, its not something to be query websites for. Need to get all your facts in place. They are building their house now, and there was no liability for CGT or stamp. I think it call came under one off gift from parents to daughter and then, husband to wife. It needed to be in both names for a mortgage. If you get it transferred before you put planning in, it would work out better id say.
 
cheers folks that sounds good. Saving to be made alright if we get our ducks in a row 9 (hopefully).
 
Just be careful, i think that you need to wait for 3 years before the transfer between husband and wife takes place otherwise it will be deemed that you have taken your share directly from your parents in law and you would be exposed to gift tax - which could be hefty.

Give the Revenue a call and they will be able to guide you ... if they will answer the phones and aren't on 'work to rule' ... or else talk to your friendly solicitor who should be able to advise.
 
I may be wrong, but I think the person to talk to is a tax consultant not a solicitor.

ONQ.
 
A tax consultant should definitely be able to advise, but stamp duty and capital taxes (such as inheritance tax, gift tax and capital gains tax) would be within the expertise of all solicitors who practice in conveyancing.
 
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i've done this, transferred from my parents to me and then into joint names with my wife straight after. solicitor sorted it out, no problems with mortgage or tax
 
Just been through the process before christmas, check out my only post, only difference mine has house built for five years. Very straight forward, €1400approx so far for sol, €20 for valuation, €80 for site drawn on map. Into my own name (so parent to child no CGT or stamp duty etc) have to wait three years for hubbie name etc.

I know the sol did contact the revenue three times before she could tell me yes they were willing to overlook fact the house built and now transferring a house not just a site. then she sent application to the revenue man directly.

Cant advise on mortgage etc as own saving/small loan.
 
onq said:
Presumably the wife is a blood relative or adopted - how else are they the in-laws?

ONQ.
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What I said was - if the site is transferred to the joint names of him and his wife then the relief wont apply as he is not a blood relative of his wifes family. If it is transferred to the wifes name only then the relief will apply.

If the site is transferred to the wife only, you do have to wait 3 years before it can then be transferred to joint names. There is no way around this. In the case of the poster who's wife did get a site and had it transferred into joint names straightaway without any tax, I would be very concerned that your solicitor did not file gift tax returns on this transfer.
 
My understanding is, and I am far from a tax expert, that a possible liability to gift tax is dependant on the site value, so if the site value is quite low, the non-relative may will be only receiving 50% of the site value (the other 50% going to the child of the parents) and that amount may be well within the the tax free threshold of what one can receive tax free from a 'stranger in blood'. It does all depend on other gifts already received which may be added on to this latest gift. If the gift he now gets is within 80% of what he can receive tax free he has to file a return. it is self assessment so if he doesn't he is exposing him self. Once again talk to your solicitor, or the Revenue who will be delighted to help...
 
Darth Vader said:
What I said was - if the site is transferred to the joint names of him and his wife then the relief wont apply as he is not a blood relative of his wifes family. If it is transferred to the wifes name only then the relief will apply.

If the site is transferred to the wife only, you do have to wait 3 years before it can then be transferred to joint names. There is no way around this. In the case of the poster who's wife did get a site and had it transferred into joint names straightaway without any tax, I would be very concerned that your solicitor did not file gift tax returns on this transfer.
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Not true,

This is the relevant section.

Transfer of a site to a child
Section 83A of the SDCA.
This section provides for an exemption from stamp duty where a parent transfers a site to a child for the purpose of that child building their principal place of residence.
The value of the site must not exceed €500,000 and the size, exclusive of the area that the dwellinghouse will be constructed on, must not exceed 1 acre.
The child does not need to be a First Time Buyer to avail of the relief but can only avail of it once.
Where relief under section 83A is claimed by a child on the transfer of a site from their parent, it will be regarded as having been properly claimed in circumstances where
1. the site is subsequently transferred into the joint names of the child and his/her spouse or partner,
2. the transfer into joint names is being effected in the context of the raising of funds from a financial institution for the purposes of the construction a house on the site and
3. the house constructed on the site will be occupied by the child, in conjunction with his/her spouse or partner as their only or main residence.
 
Putting another twist on this.
My sister is buying 2 acres of land from a neighbour and it all has road frontage, once she get's it into her name she plans on giving me 1 acre of it. Neither of us are going to build in it as we already have houses but we plan to hold onto the land for our kids in the future.

The land is costing her €15K total.

Any idea would either of us be liable for any taxes?
 
First, is 15K the market value of the land? if it is then there should be no gift tax between you and her but there could be capital gains tax on the disposal from her to you. if 15K is not the market value she coudl be exposed to gift tax on getting a gift from her neighbour. the property shoudl be valued by a valuer or auctioneer. You will need a valuation of it anyway for getting the transfer stamped but no harm getting it now so you can consider the situation with all facts. go and talk to your Solicitor!!
 
Thanks for your reply, Yes 15K is the value as we had it valued a few weeks ago. Where do i get more info on the capital gains tax?
 
Ok... this is where you should consult a solicitor who knows about the capital taxes. I think that if there is no appreciation in the value between what she buys it for and what she gives it to you for there shoudl be no CGT since you only pay tax on a gain... I should also say that there should be no CAT between you both if you havent already received a large gift form another sibling. go and talk to someone who can sit down and give a considered reply. of course the revenue would be delighted to help and will do so anonymously if you ring them up.
 
greenoverred said:
Not true,

This is the relevant section.

Transfer of a site to a child
Section 83A of the SDCA.
This section provides for an exemption from stamp duty where a parent transfers a site to a child for the purpose of that child building their principal place of residence.
The value of the site must not exceed €500,000 and the size, exclusive of the area that the dwellinghouse will be constructed on, must not exceed 1 acre.
The child does not need to be a First Time Buyer to avail of the relief but can only avail of it once.
Where relief under section 83A is claimed by a child on the transfer of a site from their parent, it will be regarded as having been properly claimed in circumstances where
1. the site is subsequently transferred into the joint names of the child and his/her spouse or partner,
2. the transfer into joint names is being effected in the context of the raising of funds from a financial institution for the purposes of the construction a house on the site and
3. the house constructed on the site will be occupied by the child, in conjunction with his/her spouse or partner as their only or main residence.
Click to expand...

This relates to stamp duty. The three year time-frame is in relation to gift tax.
 
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