CAT, CGT & Stamp Duty on Gift

T

Tony.H

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Firstly, just let me say that I am just looking for some general comments to see if my own thinking on this is in the right direction, I will be seeking professional advice before anything is proceeded with.

Following my fathers death a number of years ago my mother has been the sole owner of the family home. My mother would now like to add my name on to the deeds of the house. I have lived in the house with my own wife and children for over five years as we did not like her having to live alone

The value of my share of the house would fall outside the threshold for CAT but I believe that based on the circumstances outlined above I would qualify for the exemption below:

Gifts taken on or after 20 February 2007: Any period during which a donee occupies a house that was during that period the disponer's only or main residence will be disregarded as a period of occupation in that house unless the disponer is compelled, by reason of old age or infirmity, to depend on the services of the donee for that period. Old age refers to a person aged 65 or over.​

I also believe that my mother would be exempt from CGT as it is her primary residence.

The one area I am really unsure of is Stamp Duty, I know that I will have to pay Stamp Duty as consanguinity relief no longer applies, as I will jointly own the property with my mother does this mean that I would only pay stamp duty on half the value of the house.

Any thoughts people have on this to help me square my own thinking would be appreciated.
 
You are correct.

You could avoid stamp duty if you waited to inherit the property, but you run the risk of legislative change denying you the relief.

It is less of a worry at 1% though (assuming the property is worth less than €1m).

Assuming you meet the other conditions for Section 86 relief and everyone's happy with the plan, you'd pull the trigger sooner rather than later.
 
Thanks for that, its always nice to be told you don't have things backwards.

Just a quick follow up, would it overly complicate things if my wife was put on the deeds at the same time, would she be eligible to the same exemptions etc.
 
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