Legal age of homeowner

[evelyn]

Is there a particular age that a child can actually be named on the deeds of a house. My son is 14 and I would like to purchase a house but put it in his name.
The other reason for wanting to do this is avoiding stamp duty. As he is resident in the UK, would he be classed as a FTB in Ireland?

Apologies if this sounds like a daft question or situation!

I would appreciate some feedback

 

[jhegarty]

Is there a particular age that a child can actually be named on the deeds of a house. My son is 14 and I would like to purchase a house but put it in his name.
The other reason for wanting to do this is avoiding stamp duty. As he is resident in the UK, would he be classed as a FTB in Ireland?

Apologies if this sounds like a daft question or situation!

I would appreciate some feedback

is that not unfair for when we wants to buy his first house ?

 

[Sherman]

Do you honestly think the Revenue might think it a bit strange that a 14 year old UK resident has bought a house?! They're not bloody stupid you know

 

[soc]

I'm sure the taxman would frown upon that situation... as this child has no legal earnings... so how on earth can he afford to finance a property?

It may also be classed as a 'suspicious transaction'...and seen as a possible case of money laundering. If you were allowed to get away with purchasing property in your son's name... what's to stop a criminal from using criminal proceeds to buy a house in a child's name?

-soc

 

[ClubMan]

Don't think it will work for the reasons already mentioned and after looking at the Revenue press releases [broken link removed] and [broken link removed]. Even if this was technically OK the fact that such a transaction might be deemed to be structured purely to avoid tax might well fall foul of the Revenue's anti-avoidance legislation. In addition I presume that the solicitor doing the conveyancing would want to deal with the individual who is buying the house (i.e. whose name is on the deeds). Basically it looks like a non runner but if you insist on pursuing this then you (and your son!) should get independent, professional advice on the tax and legal issues involved.

 

[evelyn]

I did say I thought it might have been a daft question.

Thankyou for all your replies. I won't go down that route.

 

[Sarah W]

Just to follow up the legal minimim age for getting a mortgage is 18.....and lenders don't take pocket money into account as it's not taxable income

Sarah

www.rea.ie

 

[murphaph]

Just to follow up the legal minimim age for getting a mortgage is 18.....and lenders don't take pocket money into account as it's not taxable income

Sarah

www.rea.ie

Really? My old man used to tax mine, the swine! :-(

 

[ClubMan]

At least when the "payments to minors" tribunal comes around you'll be safe!

 

[murphaph]

True Clubman, I'm all legit like!

 

[Swallows]

Evelyn, Is there some other genuine reason whereby you would like to purchase the house here and put it in your sons name? I am reading between the lines here and have a feeling that you want to keep someones hands off the money. (ex husband perhaps)

Well as far as I am aware there is no law that says you cannot buy a house here. There will of course be tax issues, if you own two houses. If you live in the UK you might not be aware of the tax laws here. There are some hefty tax penalties when you come to sell one of the houses. If you would like to come back and tell us the details someone might be able to advise you better.

 

[ClubMan]

I am reading between the lines here and have a feeling that you want to keep someones hands off the money. (ex husband perhaps)

Wow! That's some inference!

Well as far as I am aware there is no law that says you cannot buy a house here.

Who ever said or suggested that there was?

 

[evelyn]

No, I haven't got an ex-husband, I'm too busy to keep up with the current one!

One of the reasons why I would like to put the house in my sons name is that i will be purchasing it below market value from my brother and might be leaving myself open to acquisition tax on the difference. I realise I will have to pay stamp duty but am worried that the beady eyes of the revenue office might pick up on the fact that I will be seeking to pay half the normal stamp duty being a relative (there is an official term for this). As I am investing for my childrens future and they will receive my assets eventually, I thought I might kill 2 birds with the one stone. The tax system is Ireland is deadly!

 

[keatinge]

Is it not true that to obtain first time buyer relief, u have to live in the house. In which case, Social Services may claim you are recklessly abandoning your 14 year old child in a house in a foreign country all alone

 

[Sherman]

Well you won't be able to avoid acquisitions tax as your solicitor will have to certify to the revenue that the price you are paying is the full market value...

 

[ClubMan]

I realise I will have to pay stamp duty but am worried that the beady eyes of the revenue office might pick up on the fact that I will be seeking to pay half the normal stamp duty being a relative (there is an official term for this).

Why? That is totally legitimate to pay half the normal rate of stamp duty (on the market rather than any discounted value of the asset) to a family member.

The tax system is Ireland is deadly!

What do you mean?

 

[Vanilla]

Well you won't be able to avoid acquisitions tax as your solicitor will have to certify to the revenue that the price you are paying is the full market value...

Nearly right, but in fact it is the parties involved in the transaction that certify that the consideration paid is the market value. They may also be required to give an auctioneers valuation because any transaction between related persons goes automatically to the adjudication office of the revenue commissioners. If the revenue do not agree with the value presented, they can send their own valuation officer to check, and if they feel any fraud is involved, there are penalties.