Forum newbie here so bear with me if I put this post in the wrong forum. I recently learnt that my uncle intends on leaving his house to me when he dies. I will have to pay CGT if I sell the house at a profit. What if I were to make a bet with him? I'm thinking along the lines of this. I Mr. xxx bet Mr.yyy that he will reach sixty before me. The wager if I win shall be Mr.yyy house. If i lose Mr.yyy gets a fiver from me. Signed by Mr.xxx and Mr.yyy. then the letter would be signed and witnessed by a solicitor. Now since I recieved the house through a gamble am I right in thinking I will recieve the house with no tax implications?
Betting my Uncle instead of inheriting house
- Thread starter FANTANA
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mandelbrot
Registered User
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What you've described above isn't a wager for starters (google substance over form).
I'm wondering if based on the time of your post this is something you came up with after a few scoops!
It's not an original idea and it wouldn't work.
I'm wondering if based on the time of your post this is something you came up with after a few scoops!
It's not an original idea and it wouldn't work.
Brendan Burgess
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Hi Fanta
When your uncele dies, the sale of the house will not be subject to Capital Gains Tax for him or for you.
When you inherit the house, you will be subject to Capital Acquisitions Tax on the value of the house. The first €30,150 will be exempt.
If you have been living in the house for 3 years, it would be exempt from CAT, subject to some conditions.
When your uncele dies, the sale of the house will not be subject to Capital Gains Tax for him or for you.
When you inherit the house, you will be subject to Capital Acquisitions Tax on the value of the house. The first €30,150 will be exempt.
If you have been living in the house for 3 years, it would be exempt from CAT, subject to some conditions.
Okay thanks for the replies. Yeah I doubted it was original or it would work just curious. What happens then to say money won over a round of golf between friends (unrelated). If it was a small amount you wouldn't declare it to revenue but what would happen if it was substantial, say €5000. Would revenue see this as a gift and tax it accordingly or would you be able to argue it was winnings from a gamble?
mandelbrot
Registered User
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Substance over form!
If it is genuinely gambling winnings then presumably there wouldn't be tax implications. If you "won" 5k a week over 2 years and he transferred his house to you to settle the gambling debt, we're back to square one again.
On a side note, even if you could "win" the house from your uncle and avoid any gift/inheritance tax, you'd end up having to pay CGT on the entire proceeds when you sell it, since you got it for free.
If it is genuinely gambling winnings then presumably there wouldn't be tax implications. If you "won" 5k a week over 2 years and he transferred his house to you to settle the gambling debt, we're back to square one again.
On a side note, even if you could "win" the house from your uncle and avoid any gift/inheritance tax, you'd end up having to pay CGT on the entire proceeds when you sell it, since you got it for free.
M
mercman
Guest
Cast your minds back many years ago (1980s I think), when Barney Curley raffled his home in Mullingar. I know who lives there now, but I am unable to remember what actually happened Revenue wise.