Stamp Duty on house 'gifted' from parent

E

EC1

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Hi, sorry if this is in the wrong forum, but wanted advice from a legal head.

Here's the story:

A friend of mine jointly owned a property (which he bought with his gf, both first time buyers at the time) and that house has since been sold as they have gone their separate ways.

My friend's father (mother deceased) is now signing over the family home to him, along with two acres of land (used for farming, no P.P. for sites). The house would be a standard bungalow in a rural area, probably worth under the 200k mark at this stage.

Is my friend liable for Stamp Duty (or any other tax), and if so, how is it calculated?

Thanks
 
He would be liable to stamp duty on the market value of the property. Therefore if the house is valued at €200k he would have to pay €5,250 (200,000 - 125,000 X 7%). The house and land would have to be valued seperately and this could increase or decrease the amount of Stamp Duty payable depending on the valuations. If his parents retain a right of residence in the house this would also decrease the stamp duty payable.
 
Mrs Vimes said:
Consanguinity relief would reduce the amount further to Eur2,625.
Sybil
Click to expand...

As per Mrs Vimes post, consanguinity relief from stamp duty should apply.

Accordingly, the stamp duty should be reduced by 50%.
 
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