Transfer of 1 acre of farmland to build on

[reillyg]

Hi,
My partner is a farmer and he jointly/equally owns and farms his land with his sibling. My partner and I jointly got planning permission for a house on a 1 acre slot on the farm. The acre is still in joint ownership of my partner and his sibling. We need to transfer the plot either into just my partners name or into both our names in order to be able to get a mortgage to build. I am aware we may have done things backwards. As we are in a scenic location, we were unsure whether that part of the farm would be granted permission.

The sibling has expressed willingness to transfer but is concerned about tax implications. I have savings, so I am willing to cover tax costs but obviously would like to keep them at a minimum as we need money towards the build too. I would also be willing to purchase the half ownership of the 1 acre - so long as priced at agricultural rate rather than typical site value. Not sure if a gift or sale is best way to go. The plot is in a scenic location in Wicklow where planning is effectively limited to very local workers with history in the area, so I don't think the planning permission has value to anyone else. I don't have experience in property transactions or tax or even farming etc. I know farmers transfer sites to relatives all the time, so it can't be that unusual but I am not sure where to start and what the costs involved might be. I'd appreciate any advice.

(if relevant, my partner and I are not married, haven't gotten around to it, but could do)

Thanks!

 

[Setanta12]

As I see it,

You need a solicitor to advise on the alienation of your 1 acre from the inherited overall site. Perhaps to avoid a cash outlay, would the sibling take an acre elsewhere on the overall site of equal value so no cash needs change hands depending on how amiable she is. Someone from a legal background would need to advise here.

You need a tax accountant as there are/were reliefs for transfer of land to farmers, but I don't know if this allows the land to be built on. your sister may also have some CGT/CAT issues to address - a more up-to-date tax accountant can properly address these.