Gift or inherit?

[Skyrocket]

Hello,

My father wants to dispose of the family home (his ppr, but not mine) before his death by gifting it to me now to avoid any savings I might later inherit from him being wiped out by inheritence tax.
From checking this site and the Revenue site I have ascertained that CAT should not apply as the threshold for CAT from parent to child is €414,799, and the house has been valued at 150k.
The things we're not clear about are stamp duty and CGT.
Could someone please explain how these two taxes apply to our situation?
Plus, would it not be better from a tax point of view to just leave it as an inheritance?

Thanks

 

[Nige]

CAT will apply equally in this case regardless of whether you get the house as a gift or inheritance.

CGT won't apply in either case as it does not apply on a death and, in the case of a gift, does not apply where it is the person's ppr (and has been for the entire period of ownership).

Stamp duty on the market value will apply if it is transferred as a gift, but won't if it is transferred on his death.

 

[Skyrocket]

Thanks for the information Nige, that really helps.

 

[Black Sheep]

I am confused by Nige's reply. If this is a gift (and below the threshold) why does CAT apply. Isn't there a CGT element on the father.

If this is an inheritance (below the threshold) why would CAT apply

 

[Pat Bateman]

Hello,

My father wants to dispose of the family home (his ppr, but not mine) before his death by gifting it to me now to avoid any savings I might later inherit from him being wiped out by inheritence tax.
From checking this site and the Revenue site I have ascertained that CAT should not apply as the threshold for CAT from parent to child is €414,799, and the house has been valued at 150k.
The things we're not clear about are stamp duty and CGT.
Could someone please explain how these two taxes apply to our situation?
Plus, would it not be better from a tax point of view to just leave it as an inheritance?

Thanks

CAT will apply equally in this case regardless of whether you get the house as a gift or inheritance.

CGT won't apply in either case as it does not apply on a death and, in the case of a gift, does not apply where it is the person's ppr (and has been for the entire period of ownership).

Stamp duty on the market value will apply if it is transferred as a gift, but won't if it is transferred on his death.

I am confused by Nige's reply. If this is a gift (and below the threshold) why does CAT apply. Isn't there a CGT element on the father.

If this is an inheritance (below the threshold) why would CAT apply

CGT shouldn't arise in either scenario. As Nige said, CGT doesn't arise in relation to inheritance. In relation to a gift of the property, no CGT should arise as the OP's father should be entitled to PPR relief in respect of the (deemed) disposal at market value.

No CAT should arise in either scenario as the ginheritance/gift should be below the parent to child threshold.

No stamp duty should arise in relation to the inheritance. In relation to a gift of the property, consanguinity relief (i.e. 50%) relief from stamp duty should arise.

I'd imagine Nige meant that capital acquisitions tax tax MAY arise in relation to a gift or inheritance.