Section 603A Disposal of site to child
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Amendments
Section 603A inserted by Finance Act 2001 section 93(1) in relation to disposals on or after 6 December 2000.
(1) In this section "child of a parent", in relation to a disposal for which relief is claimed under this section, includes an individual who resided with, was under the care of and was maintained at the expense of the person making the disposal throughout―
(a) a period of 5 years, or
(b) periods which together comprised at least 5 years,
before the first-mentioned individual attained the age of 18 years but only if such claim is not based on the uncorroborated testimony of one witness, and a disposal by a parent to a child of a parent shall be construed accordingly.
Amendments
Subs (1) substituted by Finance Act 2006 section 72 as regards disposals made on or after 31 March 2006.
Is a foster child considered a child for the disposal of a site to a child relief?
(1) From 31 March 2006, a child includes a foster child, i.e., a child who resided with and was maintained by the disponer for five years (or periods which together comprise five years) before reaching his/her eighteenth birthday. The child's claim t...
(1A) This section applies to the disposal of land which at the date of the disposal―
(a) has a market value that does not exceed [€500,000]1, and
(b) comprises―
(i) the area of land on which a dwelling house referred to in subsection (2)(b) is to be constructed, and
(ii) an area of land for occupation and enjoyment with that dwelling house as its garden or grounds which, exclusive of the area referred to in subparagraph (i), does not exceed 0.4047 hectare.
Amendments
Subs (1A) substituted by Finance Act 2007 section 53(1) as regards disposals made on or after 1 February 2007.
1 Substituted by Finance Act 2008 section 55(1)(a) as respects a disposal made on or after 5 December 2007.
(2) Subject to this section, a chargeable gain shall not accrue on a disposal of land to which this section applies where the disposal―
(a) is by a parent to a child of the parent, and
(b) is for the purpose of enabling the child to construct a dwelling house on the land which dwelling house is to be occupied by the child as his or her only or main residence.
(2A) For the purposes of subsection (2) "disposal" includes a simultaneous disposal by both parents.
Amendments
Subs (2A) inserted by Finance Act 2008 section 55(1)(b) as respects a disposal made on or after 6 December 2000.
(3) Where a child―
(a) at any time disposes of the land or a part of the land referred to in subsection (2), other than to his or her spouse, and
(b) the land being disposed of does not contain a dwelling house which―
(i) was constructed by the child since the time of acquisition of the land, and
(ii) has been occupied by the child as his or her only or main residence for a period of 3 years,
the chargeable gain which, but for subsection (2), would have accrued on the disposal of that land to the child, shall be treated as accruing to the child at the time of the disposal referred to in paragraph (a).
(4) Where subsection (2) applies to a disposal of land by a parent to a child, it shall not apply to any such subsequent disposal to that child unless, by virtue of subsection (3), the full amount of the chargeable gain which, but for subsection (2) would have accrued to the parent, is treated as accruing to the child.
Can I avail of the exemption again on a subsequent disposal to my child?
(4) Where a transfer of land from you to your child is exempt under (2), a subsequent disposal of other land to the child is not exempt unless, in accordance with (3), the child is liable for the full CGT that would have been chargeable on transfer t...
