Tax on house sale

N

ned73

Guest
i have a house which i purchased for €164k four years ago and was valued at €350k recently and i want to sell it for €310k to my son how much capital gains tax would i have to pay on the transaction
 
Was this your PPR (Principal Private Residence) or a rental/investment property? If it was your PPR then no CGT applies. If it was an investment/rental property then the CGT will be assessed on the market value of €350K and not the discounted selling/transfer price of €310K. The CGT will be 20% of (roughly) €350K less €164K (indexed for inflation up to the end of 2003 - see [broken link removed]) less any allowable acquisition, enhancement and selling expenses, less any previously incurred capital losses, less your annual CGT allowance of €1,270 (x 2 if the property is jointly held by you and your spouse for example). See [broken link removed] for more on CGT. If in doubt get independent, professional advice.
 
I don't think so since it's effectively the same as selling at the market value and gifting them the discount. As long as the discount is within the relevant Gift Tax exemption limits there is no tax due (from the child). Stamp Duty (if applicable) will be assessable on the market value and not the discounted selling price. I am not a tax expert so get independent, professional advice if in doubt.
 
Thanks ClubMan that makes sense. I suppose the stamp duty is the 'rub'. If the difference in value is presumed to be a gift then I suppose they'd have inheritance tax further down the line anyway (when I pop my clogs).
 
Note that tax planning with regards to gifts versus inheritances, structuring wills appropriately etc. should really be done with independent, professional advice.
 
Stamp duty (if any) will be at half the normal rate (consanguinity relief) as the transfer is between relatives.

Consanguinity relief - applies to transfers of land, buildings etc. to certain relatives, e.g. parent, grandparent, step-parent, child, foster-child, brother, sister, half-brother/sister, aunt, uncle, niece, nephew. Half the normal rate of duty applies. This relief does not apply to leases.
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from [broken link removed]
 
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