An exemption from Capital Gains Tax is available for a parent who transfers a site to a child for the purpose of building their principal private residence on the site.
The value of the site must not exceed €500,000. The size of the site must not exceed 1 acre excluding the ground upon which the residence will be built.
If the child subsequently disposes of the site or after building a house on the site has not occupied it for a period of three years, then the benefit of the exemption will be withdrawn by the Revenue. The child will have to pay the capital gains tax that the parent would have had to pay on the transfer of the site to them as well as any tax due on the sale of the site by them.