Stamp duty on inherited property

L

Lainey

Registered User
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Hi Everyone,

I am hoping somebody can give some advice please.
My parents died and left our home house to myself and my 2 siblings.
We agreed that i would buy out the house. We had the house valued at 200k.
Do we pay stamp duty?

Another query. We are not in a postion for approx another year to get a mortgage due to negative equity on our current house. We have agreed that for this year approx that i will lodge a small sum of money €150 every month into each of my siblings bank accounts. Can anybody tell me if this is ok to do?
 
You pay stamp duty at the time of transfer. It will be on 2/3 of the market value @1% as you already own 1/3.

I think you need to talk to your solicitor about timing, when to complete the transaction, whether or not CGT applies, etc.,etc.

Is there any real prospect of this working? Would you be better selling and paying down your negative equity? What happens if you can't get the mortgage? You won't be able to re-claim the stamp duty.

mf
 
Thanks mf1. We would not be paying stamp duty until we get the mortgage etc. We hopefully will not have any problems getting a negative equity mortgage. We just need time to save for solicitor fees, stamp duty, auctioneer fees etc.
Do you see a reason this will not work, apart from us not getting a mortgage?

Thanks.
 
The 2 sibs will require separate legal advice and if I was advising them I wouldn't transfer until I had the
mula in my grubby little hand so you need to get that sorted first.
The current arrangement is HP lite :)
 
Ircoha, there will be no transfer until mortgage is in place. I am just wondering with us paying them €150 a month into there account for a year, will it have any legal implications?
 
Lainey said:
Ircoha, there will be no transfer until mortgage is in place. I am just wondering with us paying them €150 a month into there account for a year, will it have any legal implications?
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Cant mortgage what you don't own :)

no legal, and u are below the annual give tax figure so no worries but I do wonder about the need for it as if the property goes up in value, then the estate has a CGT issue, which will be paid from the proceeds of the sale: i.e. you :)
 
Ircoha, i am clueless to this CGT etc. If house is valued at €200k and value goes up within the year we would have to pay CGT???
 
When your parents left you the house it was valued at 200.000. As it is not your main home it is an asset that can rise or fall in value. Once you sell the asset the value is established and any gain above 200,000 will be liable to CGT @33%. Each person owning the asset has an allowance of 1270 which helps to reduce the taxable amount.
 
john luc said:
When your parents left you the house it was valued at 200.000. As it is not your main home it is an asset that can rise or fall in value. Once you sell the asset the value is established and any gain above 200,000 will be liable to CGT @33%. Each person owning the asset has an allowance of 1270 which helps to reduce the taxable amount.
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Do you know if each of the 3 beneficiaries is entitled to claim €1270 allowance against CGT or is it just the one €1270 allowance against the gain? Also are auctioneers fees and solicitors fees in relation to the sale of the property and cost of clearance of the property allowable off any gain made? Also do you know at what stage the CGT is paid? Is it sorted by the solicitor handling the sale or are the executors of the estate responsible for paying it? Can you tell me where I can get some info on paying CGT? Thanks
 
An executor is not entitled to the annual small gains exemption. So unless the property has been put into your names, the exemption will not apply.
 
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