cgt on adding partner to house deeds

Z

zach

Guest
can i put my partners name on house deeds which i currently pay a mortgage on? will we be liable for cgt or is there any other way of putting my partners name on deeds without incurring a tax liability. A solicitor advised me that my partner would be liable for CGT of €20k + even though she has put a lot of her money into the house, ie. repairs,decoration,maintenance etc.....
 
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I take it that your partner is not your spouse.

Your solicitor is wrong, in that no CGT will apply.

However, there is likely to be a CAT liability. This can be minimised by putting your partner on the mortgage too and recording what they have paid towards the property.
 
I assume that you will be treated as disposing of half of your house and she will be treated as receiving a gift of half the house?

As it is your principal private residence, then there will be no CGT as nige has pointed out.

If she buys her half at market value, there will be no gift and so no CAT.

Even if you give her a gift of it, if she has been living in it for 6 years, there will be no CAT.

Why are you putting her name on the deeds? If at some later stage, she wants to buy her own house, she will lose all the valuable benefits of being a first time buyer.

Why not leave the house to her in your will which will give her some protection and it will have no negative tax consequences?

Brendan
 
Thanks to one and all, information much valued. Myself and my partner are living in the house for the last 5 years are we as well to wait for the sixth year before adding her name to the deeds? She is not a first time buyer! We have taken out a will and her name is on that but we have been told she will have to pay inheritence tax on that also!She is not position to buy her half of house as we both agree she has already contributed her share as when I bought the house she gave me the deposit and as already mentioned before she pays bills and maintains the house.
 
An amendment in the Finance Act 2007 changed the residence requirement in respect of the dwelling house exemption.

The rule had been that after 3 years (not six) of living in a house, you could be gifted that house without CAT. The amendment now states that any time the person lived in the house at the same time as the disponer will NOT count towards their 3 year residence, unless the disponer needed them to live there because the disponer was old or sick.

This applies to gifts only.

However, it does seem to apply to the current situation.
 
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