Interesting point. If she built her home on it and lived there and sold it on would it be exempt from CGT in the future?
Correct if its her principal private residence.
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Is this a field of rocks and scrub bushes above galway? You should know the value per acre as agricultural land already.
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Would she not be exempt from CGT as she is selling her primary house?
Sell her the field for market value. Loan her the money at a market rate. You pay the CGT. She pays no tax. In due course you could write off the loan and she may pay tax then but that’s another bridge to cross.
Spoken like Bertie Ahern.
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Or he could just give her the field and say nothing
As it’s your sister, it’s deemed to be sold at market value by you, regardless of what you get. But if you gift it, there’s CAT for her too.
Generally, to get the cost attributable to the site, you put the market value of the site over the market value of the entire farm and multiply that percentage by the amount you originally paid for the farm.
It’s market value at the time it’s sold so future planning permission shouldn’t affect you.
Just on the principal private residence relief, technically that would be restricted for your sister for any amount of time it wasn’t her main residence (which would obviously include all the time prior to the house being built). Technically.
There’s nothing else above galway mate. Tis that or the dump.
Thanks mate. I have a headache now. Is it possible to just give her the field and say nothing?
I think I’d better ask a solicitor 
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Is she going to actually build on the site?
It’s possible of course but if you’re caught by Zaccheaus you’re in shtuck
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Need title to the land under the house though for planning I suppose. Why not just build the house, charge her rent and leave it to her when you die?
She’d pay a clatter of inheritance tax then wouldn’t she?
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@flattythehurdler don’t be bothering with these big 4 qualified lads. They haven’t a notion of everyday tax stuff. You need to find a local lad in Galway, the type of lad in a poor fitting shit who’ll eat a carvery dinner in the town hotel every lunchtime. He’ll spend 90% of his time doing tax returns for farmers so will know every possible loophole that exists so you or your sister will pay the least amount possible.
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I think @gilgamboa is on the money here.
Transfer to sister at the original cost price to Flatty.
No CGT.
Possible declaration on CAT on difference between market rate and transferred value. Possible.
It’s then the sister’s PPR so she’s exempt from CGT if she sells it on, providing she lives there.
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This is like a FAE Case Study question.
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A fairly basic question
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Even I had a decent go off it and I’m not an accountant. To think some poor saps are paying these lads €400 an hour for their “opinion”.
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