Does all the tax kick in if you purchase site?

[lakerslady]

My husbands brother is giving us a site is was an arrangement for help he recieved from him in the past. The question is is there a way to avoid Gift tax, inheritance tax etc. if he says to the solictor that we are purchasing for e.g. €5000. We have no problem giving him that much & he said fine with that. The value of the site is €130,000.

 

[mf1]

Re: Does all the tax kick in if you purchace site?

Yes.

You don't pick a value - value for taxes etc.,etc and stamp duty is market value which you clearly state is E130,000.00. Stamp duty @ 8% is E10400.00. There will be a saving on the s.d. if husband buys in his own name. But this may cause difficulties with getting a mortgage.

Site owner may have CGT. You and husband may have CAT.

Remember you are getting a substantial gift.

mf

 

[lakerslady]

Re: Does all the tax kick in if you purchace site?

Sorry I am not up to date with all this I was lost when the solictor was going on about it. But if we purchase it for e.g. €5000 and its but into my husbands name what would be the problem with the mortage?

 

[z109]

Re: Does all the tax kick in if you purchace site?

Sorry I am not up to date with all this I was lost when the solictor was going on about it. But if we purchase it for e.g. €5000 and its but into my husbands name what would be the problem with the mortage?

This is not a problem really.

You do want your husband to purchase (to avail of the greater gift tax allowances between siblings) and then do an inter-spousal transfer to shared between the two of you (i.e. he gives half of it to you).

 

[lakerslady]

Thanks, The interal transfer is not a problem we wouldnt be offically husband & wife for another 10months. But we will look into the the greater gift tax allowance.