cat on transfer of ownership

B

Badhip

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Last parent died 2013 leaving half of house to brother who lives in the dwelling, has been living there all his life & wants to continue living there. Rest of siblings will inherit other half. He will borrow to pay off siblings for other half of house. Does he have to pay CGT or CAT if he is living there?
 
Could you re-write that to make it clearer?

As in, my mother/father died in 2013 leaving 5/6/7 adult children one of whom lives in what was the family home - valued at 400K/500K (?).

Their will left half the house to the adult child living in the family home and half to the remaining 4/5/6. They have all reached agreement that the adult child living in the family home will buy out the shares of all the others.

He will be getting a mortgage/ borrowing from friends to buy the property.

And see this link to Revenue which may answer your query.

http://www.revenue.ie/en/tax/cat/leaflets/cat10.html

mf
 
Ok sorry I'm new to this. Mother died in 2013 (she was a widow) in her will, half house to brother living in home other half 5 siblings to share. Value of property at year of death €280,000. (now valued €375,000). Brother wants to continue residing there. Just wondering what tax implications there are for him? He lived in home all his life. He is the only one living there.
 
Is the brother the mother's brother? Or the mother's son? And are the siblings the mother's siblings? Or the mother's children?

IF this is parent to child/ren and IF there are no prior gifts/ inheritances, then the child in the house has no inheritance tax ( CAT). And as he is not selling the house, he has not made any gain and therefore has no Capital Gains tax.

IF this is sister to brother, there will be a CAT liability, unless they qualify for dwelling house exemption as per that Revenue link.

If the person in the house is going ahead with this, they will need a solicitor, who will be able to look at the specifics and advise.

mf
 
Assuming mother left 1 child 50% of house and left remaining 50% to 5 other children. If the 1 child wants to buy out the 50% share from the remaining 5 children then each of them is liable to tax on the increased value their share is. E.g. inherited 50%
value 140K,sale value to first child 187.5K gain is 47.5K, divided between all 5 is 9.5K each.
 
Has probate been extracted, the date of inheritance is the date of the grant of probate so it could be that the estate has a CGT liability for the non resident siblings share.

So the resident sibling probably qualifies for Dwelling house relief in 2013 as he was resident so it's the date of death for his inheritance.
 
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