can anyone guide on CGT issue?

[jtm]

Hi, my girfriend is selling her apartment and we hope to buy a bigger place together soon. (im separated with kids) Im renting at present.
if she moves in and rents with me for some time prior to us buying again will she have to pay tax on the profit made on the sale of her place?

also if she were to gift me the money and I made the new purchase in my name only would this be exempt from stamp? or is that illegal?

 

[Nige]

In relation to the sale of her apartment, if she sells within 12 months of moving out, then the entire gain is exempt from tax (presuming that it was her PPR throughout the ownership period).

In relation to the stamp duty issue, I suspect that gifting the money to you would not be sufficient to allow you claim the FTB relief. In any case, as you are not related to her, any gift over 24k would be subject to CAT at 20%.

 

[ClubMan]

Hi, my girfriend is selling her apartment and we hope to buy a bigger place together soon. (im separated with kids) Im renting at present.
if she moves in and rents with me for some time prior to us buying again will she have to pay tax on the profit made on the sale of her place?

If the property that she's selling was always her PPR (Principal Private Residence) and never rented out then no tax applies regardless of what she does thereafter. It seems to be a common fallacy for people to assume that CGT does not apply only if you sell and then buy another PPR.

also if she were to gift me the money and I made the new purchase in my name only would this be exempt from stamp? or is that illegal?

If she gifts you the money then Gift Tax would presumably apply. I presume that you're trying to buy another house in your sole name to avail of the FTB status for stamp duty purposes that you would not be able to use if she (as a non FTB) was on the mortgage/property deeds? If so and she would in fact be contributing towards the purchase and have a vested interest then this is not allowed and would constitute illegal avoidance or evasion.

Post crossed with Nige's.

 

[Macer]

Instead of gifting the money if it was loaned from your GF and a repayment schedule was put in place, would people think this would avoid the CAT and allow jtm to qualify as a FTB. Worth investigating !!!!!