Transfer site to son or daughter – tax free ?

Transfer of a site from a parent to a child

You will not have to pay CGT if you transfer land to your child to build a house on.

The house must be your child’s only or main residence. A transfer includes a joint transfer by you, and your spouse or civil partner, to your child.

To qualify for relief, the land must:

1. be one acre or less
2. have a value of €500,000 or less.

You have to include details of the gain and relief when you file your income tax return or CG 1 capital gains form

Clawback

Your child may have to pay CGT on the disposal of the land from you to them in two specific situations. These are where your child disposes of the land and:

1. did not build a house on that land
2. did not occupy the house they built as their only or main residence for at least three years.

This clawback does not apply if your child disposes of the land to their spouse or civil partner.

Subject to qualifying conditions

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie