Taxes Consolidation Act 1997 section 603A

Disposal of site to child

Section 603A provides an exemption from capital gains tax on the disposal of a site by a parent (or civil partner of a parent) to a child, or to that child's spouse or civil partner, where the site is transferred to enable the construction of a principal private residence.

• The site must have a market value not exceeding €500,000 and an area (excluding the dwelling house footprint) not exceeding 0.4047 hectare (one acre)
• The disposal must be to a child (including a foster child or the child's spouse or civil partner) for the purpose of constructing their only or main residence on the site
• If the child disposes of the site without having built a residence and occupied it as a main residence for at least three years, the original exempted gain is clawed back and charged on the child
• Only one exempt disposal is permitted to each child unless the full exempted gain from a previous disposal has been clawed back under the clawback provisions