we are thinking of selling or transferring an investment property to our son. The property is worth around €400,000 and would like to sell or transfer it on for around €200,000. Does anyone have any advice on how to save stamp duty and or capital gains. Would appreciate any help on the matter
Delta
we are thinking of selling or transferring an investment property to our son. The property is worth around €400,000 and would like to sell or transfer it on for around €200,000. Does anyone have any advice on how to save stamp duty and or capital gains. Would appreciate any help on the matter
Delta
The 200K difference will be considered a gift but will be under the limit so he will not have to pay gift tax.
The stamp duty will be calculated on the full value (400K) regardless of what he pays you, but stamp duty between parent and son is at 50%
If you are both over 55 you may be able to get out of the CGT so you need to talk to an accountant about that.
Consanguinity relief - applies to transfers of land, buildings etc. to certain relatives, e.g. parent, grandparent, step-parent, child, brother, sister, half-brother/sister, aunt, uncle, niece, nephew. Half the normal rate of duty applies. This relief does not apply to leases.
I am not too sure on this but I think that it depends on the proportion of your income that this property was responsible for. I am not holding up much hope but if there is even the slightest possibility then it should be investigated
Just want to say thank you for the information. Difficult to know what is the best thing to do, when kids are starting on the property ladder. Dont think the over 55 bit is a runner, but will check it out.