CAT Query - Purchase below Market value

[April93]

Two of my uncles received a house as part of my grandmother's estate.
They are selling it to my brother for €50,000 below the Market Value.
It is my understanding that this is deemed a gift and CAT applies.

I understand that my brother would not be liable to CAT as the €25,000 gift would be covered under Group threshold B?
His girlfriend would be liable to CAT as follows:

25,000 minus Small Gift Exemption of €6,000 (3k per uncle) less 16,250 = 2750 x 33 % = €908

Would this be correct?

Also, both of my uncles are non - resident, will they need to file a CGT Return for the loss?

 

[T McGibney]

Also, both of my uncles are non - resident, will they need to file a CGT Return for the loss?

Is there a loss?

Bear in mind that their CGT position is determined by the open market value of the property of the date of its sale to your brother.

 

[April93]

Is there a loss?

Bear in mind that their CGT position is determined by the open market value of the property of the date of its sale to your brother.

The value of the house per the probate is €150,000. My brother is buying the house for €100,000. I presume a more recent valuation will need to be done so. Will the CAT also apply to the current market value?

 

[T McGibney]

The value of the house per the probate is €150,000. My brother is buying the house for €100,000. I presume a more recent valuation will need to be done so. Will the CAT also apply to the current market value?

Yes on both counts.

 

[April93]

Yes on both counts.

Thanks for your help!