inheritence gift from father

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dave34

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I recently got planning on a site given to me by my father, i now need to get the land signed over to my name. am i right in thinking this will be tax free as this is my only gift from him? Im not married but obviously me and my girlfriend will be getting a joint mortgage. does that mean she could be viable for tax? any advice welcome.
 
Is it an inheritance ( father deceased ) or a gift ( father alive ) ?

If inheritance then you can get €521,208 ( 2008 amounts) from parents before Capital Acquisitions Tax becomes payable.

If gift, then the same threshold above applies for the child but the parent could face Capital Gains Tax on the disposal unless the disposal can come within the remit of "Disposal of site to child" ( Section 603A Taxes Consolidation Act 1997) whereby a parent can give a site not exceeding €500,000 in value ( €254,000 up to 2007 ) for the purposes of the child building their principal private residence. If qualifying then no CGT falls on the parent. However there are strict rules on both size of site and the child actually building a PPR on it.

The CAT thresholds and PPR reliefs quoted are for parent to child. Your girlfriend is a stranger to your father and her CAT threshold would be only €26,060 (2008 amounts).

You should discuss the implications of all this with your legal advisor.
 
thanks graham i will have to investigate this and talk to a solicitor looks like my girlfriend will have to pay some tax then?
 
dave34 said:
thanks graham i will have to investigate this and talk to a solicitor looks like my girlfriend will have to pay some tax then?
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Not if she takes no gift or inheritance from your father in excess of her threshold. However whether this matches with bank/legal requirements on having joint names on the land I can't be sure. Also if this is a gift as opposed to an inheritance the donor is only relieved from CGT on the disposal of site "to a child". That may also raise complications. As however this situation is likely to have arisen already in other cases the banks/legal people may have acceptable solutions.
 
this is a gift from my father to me, the problem is me and girlfriend are applying for mortgage but will the banks give us a mortgage with only my name on the deeds therefore avoiding tax. surely there are many people throughout the country that have experienced this?
 
dave34 said:
this is a gift from my father to me, the problem is me and girlfriend are applying for mortgage but will the banks give us a mortgage with only my name on the deeds therefore avoiding tax. surely there are many people throughout the country that have experienced this?
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What are you saying? That tax should not apply to you?

There may have been a time when the bank might consider one name only on title and two on mortgages but those were the heady days of the Celtic Tiger. I doubt they will do it now.

Why don't you get the mortgage in your sole name? Then you have no tax issues. But then you girlfriend has no interest in the land/house.

mf
 
if thats the easiest way i would get mortgage on my own but doubt if bank would give me a mortgage on my salary alone
 
dave34 said:
this is a gift from my father to me, the problem is me and girlfriend are applying for mortgage but will the banks give us a mortgage with only my name on the deeds therefore avoiding tax. surely there are many people throughout the country that have experienced this?
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As I said, check with the lender and solicitor. If your gf has to go on the land then be aware of the CAT (for your gf) and possible CGT (for your father) implications. You may need tax advice also then.
 
Get your father to transfer site to you, apply for planning permission, marry your girlfriend, transfer site into joint names and apply for a joint mortgage.
 
Bronte said:
Get your father to transfer site to you, apply for planning permission, marry your girlfriend, transfer site into joint names and apply for a joint mortgage.
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If he transfers over to his girlfriend/wife within 3 years of getting it from his father then for CAT purposes she will be deemed to take it from the father.
 
i already applied for planning permision and have been granted, maybe i should of transfered land before but wasnt sure if i would get planning very hard to get planning in this area. so even if we get married would girlfriend still have to pay tax? looking into mortgages now to see if any of them will grant a mortgage with just my name on the deeds.
 
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