Sibling wants to gift me their half of the house I have been living in?

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blueband

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hi all, i own a house with a sibling which was willed to us by our parents in the 1980s. i have lived in the house since then and my sibling now wishes to gift the house to me, property is worth around 300,000 what tax liability would I/we have? thanks.
 
It’ll be messy enough. Your sibling will have significant CGT bill. You’ll have a CAT liability of 33% of €150k minus the €33,500 Group B threshold (if still intact) minus the €3k Small Gift Exemption. There should be credit for the CGT against the CAT.

It might be better though to just leave it and inherit it; no CGT on death and the potential to inherit the share tax-free via the Dwelling House Exemption if you cohabit, but the flip-side is that values should increase over time.
 
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Gordon Gekko said:
It’ll be messy enough. Your sibling will have significant CGT bill. You’ll have a CAT liability of 33% of €150k minus the €33,500 Group B threshold (if still intact) minus the €3k Small Gift Exemption. There should be credit for the CGT against the CAT.

It might be better though to just leave it and inherit it; no CGT on death and the potential to inherit the share tax-free via the Dwelling House Exemption if you cohabit, but the flip-side is that values should increase over time.
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thanks for the help guys, plenty to think about...
 
Gordon Gekko said:
It’ll be messy enough. Your sibling will have significant CGT bill. You’ll have a CAT liability of 33% of €150k minus the €33,500 Group B threshold (if still intact) minus the €3k Small Gift Exemption. There should be credit for the CGT against the CAT.

It might be better though to just leave it and inherit it; no CGT on death and the potential to inherit the share tax-free via the Dwelling House Exemption if you cohabit, but the flip-side is that values should increase over time.
Click to expand...
?? That doesnt make a lot of sense, why would CGT arise on a gift? Even then, you are assuming the gifting sibling does not live in the house also.
 
If you dispose of an asset (ie half a house) then, yes, Capital Gains will come into play - it doesn't matter how you dispose of it by a sale or a gift
 
homer911 said:
?? That doesnt make a lot of sense, why would CGT arise on a gift? Even then, you are assuming the gifting sibling does not live in the house also.
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A gift is a disposal and it’s deemed to take place at market value when it’s between connected parties (e.g. siblings).

My sense from the way the posts are structured is that the OP lives in the house but the sister doesn’t. If I’m wrong, mea culpa.
 
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