# Gift tax and spouse



## adeb (3 Oct 2011)

My husband was given a gift of a site earlier this year.  We have now gotten planning permission and are proceeding with a mortgage from the bank.  They require that the site be in both our names, do I have to pay CGT if this is being given to me by my husband?


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## 44brendan (3 Oct 2011)

No. CAT does not apply between husband & wife.


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## Gekko (3 Oct 2011)

As a result of the relevant spousal exemptions, no CGT or CAT should arise.


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## WizardDr (3 Oct 2011)

@adeb - advise your solicitor that it should be 'joint tenants'. This gives both of you an automatic right in the event of other's demise.


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## Vanilla (3 Oct 2011)

What about gift-splitting or has this been done away with?


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## Gervan (3 Oct 2011)

Who did the gift to your husband come from? If from his parents, you will be seen as getting half the site from them, and the lower Class 3 exemption will apply to that gift.


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## adeb (4 Oct 2011)

*From Parents*

The gift was from his Parents.


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## 44brendan (4 Oct 2011)

Gervan said:


> If from his parents, you will be seen as getting half the site from them


 
I don't see any basis for this in tax legislation. Original gift was from parents to child. Standard exemption limits would apply up to limits applicable at time of disposition. Any subsequent transfer to spouse would be regarded as a 2nd disposition and would be exempt for CAT under the spouse exemption rule.


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## Vanilla (4 Oct 2011)

Here you go:

http://www.revenue.ie/en/tax/cat/guide/gift-splitting.html

and here:

CAPITAL ACQUISITIONS TAX CONSOLIDATION ACT 2003
Part 2 Section 8

_Where a donee takes a gift under a disposition made by a
disponer (in this section referred to as the original disponer) and,
within the period commencing 3 years before and ending 3 years
after the date of that gift, the donee makes a disposition under which
a second donee takes* a gift* and whether or not the second donee
makes a disposition within the same period under which a third
donee takes a gift, and so on, each donee is deemed to take a gift
from the original disponer (and not from the immediate disponer
under whose disposition the gift was taken);_


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## Nige (4 Oct 2011)

However, the Revenue CAT manual states that where the gift of a site is originally to a child and that child has to put it in joint names with their spouse in order to get a mortgage, then provided adequate evidence of the bank requirement can be provided, it will not be treated as gift splitting.


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## Vanilla (4 Oct 2011)

Nige said:


> However, the Revenue CAT manual states that where the gift of a site is originally to a child and that child has to put it in joint names with their spouse in order to get a mortgage, then provided adequate evidence of the bank requirement can be provided, it will not be treated as gift splitting.



Great, any chance of a link?


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## Nige (4 Oct 2011)

Part 19.16 of the CAT manual which is available [broken link removed].


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## adeb (4 Oct 2011)

*Thank you*

Thank you so much for that Nige it looks very promising


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## Vanilla (4 Oct 2011)

Thanks Nige- on another note there is no legal requirement to have the title in both names in order for both spouses to be on the mortgage so while I have often heard of banks trying to insist that title be in both names this is unnecessary. Often when this is pointed out to them they stop insisting on it and simply put a special condition in the loan offer confirming it is in order for the title to be in sole name but mortgage in joint names.


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## M K Brazil (7 Nov 2011)

Agree that this should not be regarded as gift-splitting and that no taxes should arise.

One note of caution - if you are in receipt of any means-tested Social welfare, e.g increased OAP for adult dependent - consider implications of co-owning the house.


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