Selling at less than market value, any CGT implications.

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nodo

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I own a property , current market value about € 125,000. For the past 8 years my daughter has rented the property, paying a "market value rent" , presently € 500 month. She has also done a lot of maintenance , and upgrading the furnishings and fittings.

She may now be in a position to get a mortgage to purchase the property.


To save her getting too big a mortgage ( and also save myself some CGT ! ) I would like to sell her the property for about € 100,000 . The valuation I used for Local Property Tax was € 130,000.

Can anyone let me know if this reduced sale price will cause me any problems with CGT .

Thanking you for any information. Nodo.
 
As your daughter is connected to you the price she pays is irrelevant. You will pay CGT on the market value of the property on the date of the gift.

The property may qualify for the Dwelling House exemption of CAT purposes for your daughter.

Stamp Duty is also based on Market Value.
 
Thanks for information Joe ---- another money saving plan of mine bites the dust.!

Would be probably best just to leave it to her in my will.

Thanks for your reply. Nodo.
 
Agree with Joe, your CGT will probably be relatively small.
 
Last edited by a moderator:
Based on current rules, your best bet would be to leave it to her in your will.

No CGT would arise for you, no stamp duty would arise for her, and no CAT would arise for her (under the Dwelling House Exemption).
 
Thanks for advice Gordon , and Joe.

I'll tell her to keep being nice to me till I shuffle off.
 
I'm sorry Joe but Stanl a Duty is most definitely calculated on the agreed sale price. There is no "market value" other than this.

Nodo, you can't take the p*ss but your not far off the correct value so you might be ok.

Joe_90 said:
As your daughter is connected to you the price she pays is irrelevant. You will pay CGT on the market value of the property on the date of the gift.

The property may qualify for the Dwelling House exemption of CAT purposes for your daughter.

Stamp Duty is also based on Market Value.
Click to expand...
 
From Revenue

"Conveyances/Transfers of Residential Property
The most common charge to stamp duty that affects individuals is the stamp duty on the purchase of houses and apartments. The amount of stamp duty payable depends on the price paid (or the market value where the price paid is less than market value) for the property."

Stamp duty is payable on market value - not agreed sale price where that is lower than market value.

OP was talking about selling the property to his daughter at less than market value.

mf
 
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