house as gift - gift tax/cat/stamp duty?

C

cbj05

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I am married and myself and my husband are living in a residence that we bought between us. My father has very kindly decided to gift a house that he has (not my parents main residence) to myself and my husband. I am totally confused as to the tax implications. Am I correct in saying:

  • If the house is valued under €466,725 we will not be subject to CAT
  • We WILL have to pay 20% of the market value (at the time when the deeds change from my dad's name to our names) for CGT as no dependants lived in the house for 3+ years and was not main residence
  • Stamp Duty - do we have to pay even though we are planning on building onto existing house and living in it for the long term - if we do have to pay is it half the normal rate (whats the normal rate here for a house thats about 1000sq ft and as is could be worth €400K)
I'd appreciate any direction with this.
 
Re: house as gift - gift tax/cat/stamp duty???

1. It will probably make more sense for your father to give the house solely to you. The half of the house that he might give to your husband would trigger a charge to gift tax. Likewise, the half rate stamp duty only applies as between you and your father - not as between your husband and your father.

2. There will be CGT if the transfer is done now. You might consider postponing the transfer. Ultimately, if it is taken as an inheritance, there will be no CGT and unless the house goes up in value (and stays ahead of inflation) there will be no inheritance tax either.
 
Re: house as gift - gift tax/cat/stamp duty???

Thought that if you were married that a gift from father to daughter AND husband would not be subject to gift tax if under the threshold value....

Also other threads in this section were talking about stamp duty in this case - anyone else like to comment?
 
Re: house as gift - gift tax/cat/stamp duty???

cbj05:

Couple of aspects, and I dont think I have all the information:

1. Gift from your Dad to husband would have CAT implications.
2. Gift from your Dad to you has CAT implications, not on THIS gift, but on any others you might get.
3. Gift from you to husband has no CAT implications.
[4. There are always pitfalls with how you structure transactions with Revenue].
5. Was this house ever your parents Principal residence?
6. There are deductions available for this property depending on when it was acquired; whether it was ever a principal private residence; on any capital costs.
7. Being creative, would there be a possibility of looking at the reliefs of the parental house and occupying that... dont have enough time to look at this immediately.

I would, given what I have read get a tax adviser in on this. Sometimes Revnue officila may help. But the problem with executing these things is a regret criteria afterwards.
 
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