Implications of buying from parents

[spud26]

Just wondering if anyone knows are there any implications to buying an apartment from my parents. For example, if they are selling to me at a reduced price is that considered a gift/inheritance and therefore subject to tax?

Thanks in advance!

 

[mf1]

You should take professional advice.

If this is a second property owned by your parents, there may be a Capital Gains Tax liability for your parents on the disposal.

You may have a Capital Acquisitions Tax liability on the gift depending on the value.

There will be stamp duty payable on the purchase. There will be two sets of legal fees as one solicitor cannot act for both.

All of the taxes will be calculated on the market value of the property and not on the reduced price.

mf

 

[Joe_90]

Well put MF, I'd add if it gives rise to a capital loss, the loss can only be set against gains made on disposals of assets to you.