Buying house from Parents with Partial Gift ?

[Alan79]

Hello All,

I would like to understand the Tax implications of the following scenario.

House is fully owned by parents, I ( their son) have also been living there for the past 6 years
Lets say the house is worth 250K and they want to sell it to me for 125K with the remaining 125K being a gift.

Now I assume I will have to pay any stamp duty at the market value which is fine.

Im wondering what are the Tax implications for my parents, is this an efficient way of gifting ? anything I need to be aware of ?

Thanks in advance.
Alan

 

[Brendan Burgess]

Your parents can give you gifts and inheritances of up to €330k cumulatively throughout your life without you facing any Capital Acquisitions Tax.

So assuming that they have given you no other gifts, this transaction would not trigger a CAT liability for you, but it would knock €125k off the cumulative exemption.

If the house is not their home, then they will pay Capital Gains Tax based on the difference between €250k and what they paid for it originally.

If it's their home, there is no CGT on the disposal.

Not sure about stamp duty but as it's only 1% , it's not material.

Brendan