CGT/Stamp Duty

O

obj

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My father is gifting me a house approximatly €450k aprox. I need to spend about €25 to finish renovation. I want to sell the house then and buy a cheaper house some where to rent out. I also want to use the remaining capital to pay off the majority of my existing mortage - €131k. Am I going to be charged stamp duty for the house being gifted to me, then capital gains on the house when I sell it, and finally stamp duty on the puschase of another house.
 
given the sums involved, seek professional advice. it wont cost much for a professional opinion.
 
obj said:
My father is gifting me a house approximatly €450k aprox. I need to spend about €25 to finish renovation. I want to sell the house then and buy a cheaper house some where to rent out. I also want to use the remaining capital to pay off the majority of my existing mortage - €131k. Am I going to be charged stamp duty for the house being gifted to me, then capital gains on the house when I sell it, and finally stamp duty on the puschase of another house.
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Your father is allowed to gift you 478k without a tax liability arising for you. However, I think you will pay half the normal stamp duty rate on the house (consanguinity relief). Presumably this house will not be your PPR and therefore, when you sell, you will have a CGT liability. With regard to the house you purchase to rent out, you will have to pay stamp duty at investor's rate.

Do a search on AAM because I think I've read somewhere that your father might also have a CGT liability. You should get professional advice before you proceed but this forum is helpful with regard to understanding the questions you should ask of a professional.
 
You need to loan your father the 25K, make the improvments and then get him to sell the house and give you the proceeds and repay the loan. That way you don't pay any tax.
 
If it's not the father's PPR then he'll have a CGT liability on the sale. The OP will still have a stamp duty liability on the investment property. However this would save the OP paying stamp duty on the gifted house.
 
Litewieght is correct; the father will be liable to CGT due to connected-party legislation.

The deemed proceeds will be the market-value of the property at date of sale and CGT is calculated in the normal manner.
 
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