The Gazette 1979

GAZETTE

APRIL 1979

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

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

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

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