can we offset building costs against Stamp Duty Liability

[kerrybiffo]

Hi

A few years back my wife and I spent a large amount of money building onto her family home. Her parents live with us in this house now but we never went about getting the house signed over to us. If we go about it now, i figure that we will not need to pay any Capital Gains Tax as the value of the house should be less than the CGT limit for a parental gift. However I think we will still need to pay Stamp Duty. My question is whether we will need to pay the SD on the full value of the house, or whether we can argue that SD should only be payable on the (House Value - €money we invested)?

Anybody know the answer to this, or know how I would go aboyt getting the answer?

thanks

 

[plant43]

I might be wrong but if they sign the house over to you as a couple then it's not a parental gift and would be liable to CGT.

 

[mathepac]

1. If the house was in your in-laws' name at the time the extension was built and paid for by you, they may have an outstanding liablity for tax (CAT on a gift) on the money you spent on their house

2. The tax liability on them gifting the property to you would be CAT (gift or inheritance tax)

3. I don't see where CGT would play a part in their disposal of their PPR or your acquisition of it by way of gift or otherwise

4. AFAIK, there is no stamp duty payable on a gift below the relevant threshold from a parent to a child. I don't know about an in-law (you)

5. There is no off-set facility that I am aware of for any stamp-duty liability in the circumstances you describe.