Non PPR house transfer from mother to son

[Bongo]

Can anybody advise me if the following is accurate where a mother gifts a house to her son for no consideration.
(not her PPR, but belonged to her own mother)

Market Value on inheritance 50k (1989)
Market Value 350k approx. (2006)
(ignoring costs, indexation 1989-2002 & annual CGT allow)

CGT: 300k @ 20% = 60k (payable by mother even though no cash received)
CAT: zero (below mother-son threshold)
SD: 350k @ 3% @ 50% = 5.25k (payable by son as a first time buyer)

Is there any possibility of avoiding or deferring any of this tax liability as no consideration is received by mother?

 

[mf1]

Is there any possibility of avoiding or deferring any of this tax liability as no consideration is received by mother?

I think your figures are correct - check the stamp duty rates for ftb's - I don't have it to hand at the moment.

No way to avoid/ defer liability. She could of course sell the property either to son or on the open market, get her few bob and pay taxes out of it.

mf

 

[bazermc]

Bongo

Calculation seems correct

Better check that son has not received any prior gifts or inheritances from group A - since 1/12/99
Gifts less than €3K are exempt and do not count towards the threshold

Has the mother got any capital losses current or carry forward eg eircom shares? these can be used now against the gain?

Can the gift be deferred to an inheritance? - therefore no CGT or Stamp duty will arise

Unfortunately no way to defer the tax, however if CAT did arise this can be reduced by the amount of CGT payable as the two taxes arise on the same event.