Site Acquisitions from a Family Member
There are some people who receive a site to build, either free of charge or at a reduced value, from a family member.
What you need to do if you acquire a site from a family member
If you acquire a site from a family member, it is important to be aware of the following:
- The site must have an up-to-date market valuation by an auctioneer. This will help assess stamp duty and gift tax liabilities (if applicable)
- The site must be properly marked on an original Property Registration Authority Map or Ordnance Survey Map and the boundaries co-marked on the map must correspond with the position on the ground. You will need to engage a competent architect or engineer to do this for you.
Site Acquisition from parent
No stamp duty is payable provided the site is:
- Transferred as a green field site
- The size does not exceed 1 acre together with size of footprint of house
- Market value of site does not exceed €500,000. This is the first transfer of a site to the child for the purpose of them erecting a house on the site
- The first transfer of a site to the child for the purpose of them erecting a house on the site
Site from Family Member other than Parent
The same rules apply as outlined above. However consanguinity relief is available which reduces stamp duty to 50% of regular rate e.g. If an uncle transfers his site which is valued at €100,000 to his nephew, then his nephew will pay stamp duty at 3% instead of 6% due to consanguinity relief.
If the uncle sells the site to his nephew for €50,000 market rules apply as parties are connected parties. Market value is €100,000; nephew takes taxable gift of €50,000.
Seeking Property Law Advice:
For further information, please contact Malcomson Law by calling 01 8744422 or by filling out an Online Enquiry Form.