CGT - Profit on sale of house

[machalla]

I was asked a CGT question by an aquaintance earlier.

He is selling a house (not his primary dwelling) to his son. He will actually be making a profit on this sale even though he has knocked something off the price of the house for the sake of his son (5-10% of the market value). What he is concerned about is if his selling it to his son at what would probably be less than market value could he be liable for CGT on the sale of the of the house at the full market value or will CGT be just on the actual sale price.

I believe he wanted to sell the house in any case, couldn't find any buyers buy his son offered to buy it from him. Would this be regarded as just the effective market value of the house then as he couldn't sell it to anyone else at the time?

I would have thought it would be ok but perhaps the revenue might view it more dimly due to selling the house to a family member? Its not some million pound mansion, just a second home in the west of Ireland worth probably about €200k in better times (I am guessing at value here).

If anyone has an opinion on the above I'd be interested to hear it.

Thanks.

 

[Vanilla]

CGT is always assessed on the market value. He should get an independent auctioneers/estate agents valuation of the house.

 

[ubiquitous]

CGT is always assessed on the market value. He should get an independent auctioneers/estate agents valuation of the house.

...and independent tax advice on the CGT exposure, with a view to minimising his liability.