On the assumption that stamp duty paid on the transfer of a property from father to son can be used to reduce the associated CAT liability at the time of acquisition, can it also be used to reduce any gain from the subsequent sale of the property some years later? ie Acquisition value plus stamp duty less net sale value
Stamp Duty offset
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Brendan Burgess
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I don't follow the CAT issue.
Yes, to the CGT issue. If someone buys/acquires a residential property for €500k + stamp duty, the cost for CGT purposes on a subsequent sale would be €505k plus any legal fees.
If it's a material amount, you probably should talk to a tax specialist.
For example, if dad gives the son a property worth €1m which results in CGT for the father on the disposal and CAT for the son, the CGT paid can be set as a credit against the CAT.
Brendan
Yes, to the CGT issue. If someone buys/acquires a residential property for €500k + stamp duty, the cost for CGT purposes on a subsequent sale would be €505k plus any legal fees.
If it's a material amount, you probably should talk to a tax specialist.
For example, if dad gives the son a property worth €1m which results in CGT for the father on the disposal and CAT for the son, the CGT paid can be set as a credit against the CAT.
Brendan