Capital Gains Tax (CGT) reliefs

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.

The term 'child' includes your:

• son or daughter
• stepchild
• civil partner's child
• fostered child, whom you maintained for at least five years before they reached the age of 18. (This must be supported by the testimony of more than one witness.)

How do you qualify for the relief?

To qualify for relief, the land must:

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

How do you apply the relief?

Include details of the gain and relief when you file your CGT return.

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:

• did not build a house on that land
• 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.