The Gazette 1979

GAZETTE

APRIL 1979

Despite the foregoing and other reliefs there are cases

where Capital Gains Tax could apply and bite fairly

heavily.

(3) Stamp Duty and Other Expenses of Transfer

It is only right to point out that normal family transfer

during the donor's lifetime, however, will involve Stamp

Duty at 1% on the property transferred together with

other expenses. In examples taken — a farm worth

£500,000 or more, Stamp Duty alone can be about

£5,000 on top of which there are other expenses. The

stakes are so big, however, that an expenditure of

£5,000 or more is obviously well worth while to secure a

saving of £50,000 or £100,000.

Conclusion

Each case must be examined individually, because

obviously the circumstances will differ according to the

family circumstances, the value of the assets and the

extent to which the spouse and each child is being

benefited.

If we move away from the immediate family circle out

to brothers and sisters or nephews and nieces we are

faced with much smaller thresholds and consequentially

heavier liabilities. Even in these cases, however, it may be

possible to achieve material savings. There is one case

that in particularly worth mentioning. A nephew or niece

working substantially wholetime with an uncle or aunt for

a period of five years is entitled to the same thresholds as

a child but only in respect of business assets or shares in a

trading company. Accordingly, if anyone wishes to

benefit a nephew or niece rather than the Revenue

Commissioners it is important to try and secure the

position that he or she is working substantially wholetime

for this period.

The subject given to me for this address included

Companies and Partnerships. Companies would

obviously provide a very convenient method for co-

ownership in different shares and for the transfer and

disposal of property. They present great practical

R. W. RADLEY

M.Sc.

, C.Chem., M.R.I.C.

HANDWRITING AND

DOCUMENT EXAMINER

220, Elgar Road, Reading, Berkshire, England.

Telephone (0734) 81977

Independent Actuarial Advice regarding

Interests in Settled Property

and

Claims for Damages

BACON & WOODROW

Consulting Actuaries

58 Fitzwilliam Square

Dublin 1

(Telephone 762031)

difficulties, however, because Land Commission consent

has to be obtained to vesting land in a Company and the

transfer of any land into a Company's name will involve

Stamp Duty at the appropriate rate to the value and could

also give rise to problems of Capital Gains Tax , Gift Tax

and Capital Acquisitions e.g. the agricultural relief for

Capital Acquisitions Tax will be lost. Partnerships are,

however, a more practical proposition — in fact they are

almost an inherent or implied consequence of any form of

joint or co-ownership. The subject, however, is really one

which would need a separate paper.

I would like to conclude with my original emphasis that

any person with property should make a will even if that

property comprises only a Labourers' cottage and plot.

Better to make a will and dispose of the property as you

want even where there are no tax liabilities than to have

the ownership arbitrarily divided by the laws of intestate

succession. Even in smaller estates serious injustices can

arise by the absence of a will — the child who has stayed

at home may find it impossible to deal with his brothers or

sisters for their shares, if there is no will — even one

brother or sister insisting on the full value of his or her

share on an intestacy may create an impossible position.

The same principles apply, of course, to the man with a

bigger estate except that the problems may be

compounded and aggravated by unnecessary liability to

heavy taxation. It can only be described as an inexcusable

folly for a man with substantial assets irrespective of his

age not to look closely at his affairs, to be fully advised

and to make such will, settlement or arrangement that will

give the Revenue the smallest possible slice of the family

cake.

The Incorporated

Law Society

of Ireland

The Society Requires a

Solicitor

not less than 10 years qualified,

to serve in its

Professional Purposes Division.

The Solicitor will be concerned with public

relations, including the performance of members of

the profession, the relationship of members of the

profession to one another and the general area of

professional practice.

Remuneration will be by negotiation.

Application, including a resume of career to date

and specifying remuneration requirements should be

submitted to:

THE DIRECTOR GENERAL

(Marked Personal)

not later than 12 noon

on 21st May, 1979