Loan to cover CAT - possible?

A

Annyong

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Here's a scenario that I could do with advice on -

If I was to inherit a house valued at €900K - my understanding is that €194K f €would be due in CAT. (factoring in the new threshold of €310K) Now the house is currently in apartments and therefore yield a income.

Do you think I could get a bank loan to cover the CAT? Are banks happy to loan out such a large sum to pay a tax bill? If so does anyone of any suggestions on lenders.

Thanks all
 
You could also agree a payment plan with Revenue. They charge circa 8%, so a mortgage would clearly be preferable.
 
Thanks Mr Gekko for your quick response. I thought that I would have to pay revenue in one lump sum payment. Didn't know they offered payments - interesting. Also - didn't think it would be possible to get a mortgage on property. Thought I would have to get a short term loan

Thanks for the advice
 
Gordon Gekko said:
You could also agree a payment plan with Revenue. They charge circa 8%, so a mortgage would clearly be preferable.
Click to expand...

Hello again - I have been trying to find out from revenue more information on the payment plans you mentioned - I cant seem to uncover the maximum length of the payment plan. Would you happen to know?

Also I know that you dwelling house is free from CAT - but what constitutes a dwelling? I currently have no home of my own so if I was to move into this house prior to inheriting would this be free from CAT? Does the fact that the house is in apartments impact things?

Cheers
 
Without seeing the property, it's impossible to say. Perhaps the exemption could apply to one apartment or the whole building if it was converted back. That exemption was more or less abolished today except in limited circumstances.

They tell you that payment plans can be up to 24 months but you can get them longer. 6 years was the most I've seen.
 
Gordon Gekko said:
Without seeing the property, it's impossible to say. Perhaps the exemption could apply to one apartment or the whole building if it was converted back. That exemption was more or less abolished today except in limited circumstances.

They tell you that payment plans can be up to 24 months but you can get them longer. 6 years was the most I've seen.
Click to expand...

Thanks so much this is all very interesting - didn't know that the exemption was abolished. That's big news.
 
I think that there is a difference between an 'apartment' and a 'bedsit'. In any event, if you are living in the property, you are either occupying an apartment or a bedsit and you cannot occupy the entire building.

I would suggest you take advice from a tax consultant and/or solicitor.
 
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