# Property swap between brothers, any tax implications



## JohnDung (25 Oct 2004)

Myself & my brother have inherited joint ownership in an old house. We intend to do a swap,I giving him a site worth 100K for his share in the house (worth about the same) leaving me the full owner of the house. I may live in this house some time in the future. Would I or my brother have to pay transfer tax?


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## Capall (27 Oct 2004)

3 potential tax charges could arise

1)Capital Gains Tax-You will be both deemed to have made a disposal at market value of your property. As the house was inherited at market value recently there should not be cgt on the disposal of the 1/2 share. Will be CGT on the site disposal depending on its original cost

2)Capital acquisitions tax if there is a gift element for either party

3)Stamp duty on a site of 100000 would be 6000 with family relief bringing this down to 3000


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## LDFerguson (12 Jul 2010)

A variation on this query - two brothers inherit a house worth €200,000 today.  No inheritance tax liability for either brother now.  One brother buys the other one out for €100,000, then sells the house later for more than €200,000.

How is the taxable gain calculated?


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## Joe_90 (12 Jul 2010)

Brother A is selling his half share to brother B, market value applies so its half the value of the property.  So brother A has a CGT disposal if the value is higher than the E100,000 he has a liability.
Brother B is deemed to acquire the second half for the market value.  So the base cost is E100,000 + half the market value at date of transfer.


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## LDFerguson (13 Jul 2010)

Thanks Joe, 

My understanding is that Brother A will sell his half to Brother B for full open-market value, so that eliminates any question of CGT now.  

House hasn't changed in value since date of inheritance so Brother B will be deemed to have acquired at €200,000 when he sells.


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## s__words (22 Sep 2010)

Hi 

I've a question about land swap between myself and my father.I have approx 3 hectares which I bought in 1995 for about £13,000, which I now want to swap with my father for approx 3.5 hectares(this land has being in the family for years), What are the tax implications if any in doing this transfer?


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## Vanilla (22 Sep 2010)

Are you a farmer? Do you spend not less than 50% of your time farming? You may qualify for farm consolidation relief, do a search on the www.revenue.ie website for the conditions that apply.


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## s__words (22 Sep 2010)

Sorry, meant to say although my father is a farmer ,I'd not be classed as a farmer for the farm consolidation relief as I'm a PAYE worker.


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