Transferring a Site- 10 things you need to know
February 14, 2024
- The first thing you will probably need is a Land Registry Compliant map of the site to be transferred. This is usually drawn up or marked out by an engineer.
- You will need a valuation- this can be obtained from an auctioneer.
- If the site is being transferred from a parent to a child and is 1 acre or less, the transferor is exempt for Capital Gains Tax (“CGT”). This is an important exemption and can result in substantial savings.
- This exemption does not apply for transfers between other relatives and tax advice should be obtained to determine potential liabilities.
- To avail of the CGT exemption, it may not be tax efficient to transfer the site into joint names with your partner initially. All parties to the transaction will have to be independently advised.
- If the transfer is voluntary, it will be deemed a gift and therefore taxable for capital acquisitions tax purposes.
- If the value of the site is below the threshold, there would be no tax but the amount will be deducted from your threshold.
- You may also be able to benefit from the small gift exemption of €3,000.00.
- Stamp duty is payable on the transfer at a rate of 7.5% of the value of the property. However, you can apply for a refund of 11/16ths of this amount if you start building within 30 months.
- You may be eligible for the Help to Buy Scheme, if you are a first time buyer/ self builder.
There is more to voluntary transfers of site than meets the eye so make sure you obtain the appropriate legal advice as soon as you can. Call us today on 061 314 948 to make an appointment.
