Stamp duty when splitting land in family

S

sam-online

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I will try to ask the question with an example to avoid getting bogged down in details at this stage.

An example:

Would it be possible for 5 brothers to purchase 100Acres of land together for €100,000, and split the land before stamp duty is paid so they each pay €20,000 each plus stamp duty @ 1%, (total cost each is 20,200) or would the land be purchased at 100,000 duty paid at 6% then split (total cost each 21,200)
 
I'm sure the vendor would be prepared to sell the land in five parcels. Five sets of legal fees though.
 
Why is that? It's hard to advise or give an opinion if you're not providing enough detail.
 
Firstly thanks for your quick responses so far..

The land can only be sold in one lot in this example as it is an example, im trying to understand the stamp duty in relation to this type of transaction not really trying to buy land in 5 lots, i already understand that you can buy land in separate lots. Smaller lots of land would generally have a higher per acre value (or rather price) but im trying to avoid this level of detail at the moment. Thanks
 
Revenue would scrutinise this and would take the view that there were a series of related contracts/ transactions so, in short, stamp duty would be paid on the entire price at the appropriate level and not on any fictional "splitting" basis.

For what its worth, these ideas almost invariably cause grief as people focus more on "saving a few bob" rather than the overall issue of why they are buying, what they want to do, how they will structure things and how they can exit the deal if it all goes pear shaped.

mf
 
Excellent Response thanks, it makes sense that the Revenue will make a judgment call if the rules are unclear and also that they will go for the bigger Stamp Duty Payment.
 
Actually, the rules are quite clear - this is an extract from Form SD10A and is the cert. that must go into the Deed so an untrue certificate to avail of a lower rate of tax would , on scrutiny, lead to penalties and interest. Stamp duty is a form of "self assessment "tax. Its not so much a question of getting away with it by not being caught when you do it but rather that unless a deal is entirely above board, when and if it is uncovered, the penalties come into play.

“It is hereby certified that the consideration (other than rent) for the sale/lease is wholly/partly attributable to property which is not residential property and that the transaction effected by this instrument does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration (other than rent) which is attributable to property which is not residential property exceeds €10,000 / €20,000 / €30,000 / €40,000 / €70,000 / €80,000.”

mf
 
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