Scenario is as follows;
Single guy sells his house (bought 5 years ago) to his parents for Eur 280k. They are not first time buyers. He's trying to tell me that thay are not liable to Stamp Duty on this but I cannot see how this is the case. Stamp is on the sale price of the property which will be 5% of Eur 280 = Eur 14K. Is there any way to avoid this?
Could he possibly 'gift' it to them? Would that work out better from a tax perspective?
I assume he would have to pay CGT at 20% on the capital gain? Let's assume the tax liability if (290-200=80*20% = 16k) In turn,they would have a 'gift' tax liability of 20% on the vaule of the property they acquired. Would the threshold of circa Eur 46k apply in this situation? The CGT that he pays cold then be offest against their gift tax liability, provided they don't sell the property within 2 years.
Advice/clarification would be appreciated
Single guy sells his house (bought 5 years ago) to his parents for Eur 280k. They are not first time buyers. He's trying to tell me that thay are not liable to Stamp Duty on this but I cannot see how this is the case. Stamp is on the sale price of the property which will be 5% of Eur 280 = Eur 14K. Is there any way to avoid this?
Could he possibly 'gift' it to them? Would that work out better from a tax perspective?
I assume he would have to pay CGT at 20% on the capital gain? Let's assume the tax liability if (290-200=80*20% = 16k) In turn,they would have a 'gift' tax liability of 20% on the vaule of the property they acquired. Would the threshold of circa Eur 46k apply in this situation? The CGT that he pays cold then be offest against their gift tax liability, provided they don't sell the property within 2 years.
Advice/clarification would be appreciated