stamp duty saving on land?

C

cappamj

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114
Hi,
I will be taking legal advice next week but wonder if anyone might know if the following is possible.
I am about to buy some land(not zoned for building) total area is 6 acres and price is €105,000 this puts it into the 7% stamp duty rate(€7350)

Can I buy this land in 2 plots eg €50k and €55k stamp duty is at 4% (€4200) so there is a saving of €3150.
 
Doubt it. Revenue will judge such related transactions as one as far as I know. Otherwise everybody would be buying houses one half or whatever at a time just to avoid/reduce stamp duty. I'd imagine that Revenue will simply see this for what it is - a set of transactions solely geared to avoid tax. Technically legal but falling foul of their anti-avoidance rules. I would imagine that any reputable professional (solicitor or tax advisor) will tell you something along these lines.
 
ClubMan said:
Doubt it. Revenue will judge such related transactions as one as far as I know. Otherwise everybody would be buying houses one half or whatever at a time just to avoid/reduce stamp duty. I'd imagine that Revenue will simply see this for what it is - a set of transactions solely geared to avoid tax. Technically legal but falling foul of their anti-avoidance rules. I would imagine that any reputable professional (solicitor or tax advisor) will tell you something along these lines.
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I thought that might be the case.
 
ClubMan said:
Doubt it. Revenue will judge such related transactions as one as far as I know. Otherwise everybody would be buying houses one half or whatever at a time just to avoid/reduce stamp duty. I'd imagine that Revenue will simply see this for what it is - a set of transactions solely geared to avoid tax. Technically legal but falling foul of their anti-avoidance rules. I would imagine that any reputable professional (solicitor or tax advisor) will tell you something along these lines.
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I forgot to mention I was buying part of this land last year with the intention of my Son getting planning for a house for himself, he was refused and deal fell through. The seller is now selling full field but I still have the site maps and paper work for part I was buying. Would this make any difference to how revenue might view it, ie site separate and balance of land. I will be meeting with my solicitor but like to check things out myself if possible.
 
cappamj said:
I forgot to mention I was buying part of this land last year with the intention of my Son getting planning for a house for himself, he was refused and deal fell through. The seller is now selling full field but I still have the site maps and paper work for part I was buying. Would this make any difference to how revenue might view it, ie site separate and balance of land. I will be meeting with my solicitor but like to check things out myself if possible.
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Again I doubt it but am not a tax expert. Basically if you are buying the lot then any artifical divvying up just to avoid stamp duty would surely fall foul of Revenue's anti avoidance rules?
 
If the transactions are truly separate then fine. However you say that the vendor is selling the entire plot this time so it is not two separate transactions. You do sometimes come across transactions that are truly separate where the purchase of one part of or a property is not dependant upon another but where the purchaser happens to have bought two together and Revenue will accept a genuine case but you don't seem to qualify here.
 
Hi,
I talked to solicitor today he told me if plot A( where planning was refused) is bought in my Sons name and rest of land in my name that we can pay the lower rate of stamp duty ie 4% on each purchase.
I think he is wrong but worse case is we will have to pay the 7% on full price. I wonder should I check with revenue before contracts are drawn up as I do not want to break the law in any way.
 
Most (virtually all) accountants have no experience in dealing with Stamp Duty on land. I think OP should go with solicitor's suggestion. He can declare the circumstances to Revenue when presenting the deed for stamping and if they feel it should be 7% then so be it. I believe it reasonably likely that they will treat it as two separate transactions, based on thh facts outlined.
 
MOB said:
Most (virtually all) accountants have no experience in dealing with Stamp Duty on land.
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Fair enough - but based on posts on AAM here and comments elsewhere the number of solicitors who don't know the ins and outs about taxes such as SD and CGT is not negligible so I would still be inclined to talk to a tax expert.
 
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