Tax treatment gift parent to kid

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Glenbhoy

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According to today's Irish Times property supplement - solicitor Brian O'Donnell bought a house on Ailesbury road for 9.6M for his daughter. My query is, how can this be done without incurring substantial tax charges? My rough estimate that (in the unlikely? event of some avoidance scheme), the liability will be approx 40% of 9M ie. 3.6M, again this would probably be paid by the father, thus incurring another liability and so on until eventually the liability is small enough that the daughter can pay it herself. (Obviously, the story may be incorrect/speculation etc).
Any views?
 
Glenbhoy said:
According to today's Irish Times property supplement - solicitor Brian O'Donnell bought a house on Ailesbury road for 9.6M for his daughter. My query is, how can this be done without incurring substantial tax charges? My rough estimate that (in the unlikely? event of some avoidance scheme), the liability will be approx 40% of 9M ie. 3.6M, again this would probably be paid by the father, thus incurring another liability and so on until eventually the liability is small enough that the daughter can pay it herself. (Obviously, the story may be incorrect/speculation etc).
Any views?
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The rate is 20% for a number of years now but the rest of your point would appear to be valid.
 
The rate is 20% for a number of years now but the rest of your point would appear to be valid.
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Whoops!! Should have went back and checked - too wrapped up in UK IHT!!
 
Did he actually sign over the deeds, or is he keeping them in his own name?
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I don't know, it being a newspaper report, it should all be taken with a pinch of salt - perhaps he has 'loaned' her the money - our first 1000yr mortgage?
 
"My query is, how can this be done without incurring substantial tax charges? "

Leaving aside the specifics of the reported purchase (about which I know nothing) and commenting in general terms only, there are a number of perfectly legitimate ways in which the tax on such a transaction might be minimised.

For example, the money used might actually be a child's own money, having been for placed in trust for the child on birth and wisely invested ever since.

Or the property might simply be bought in a parent's name and given to the child at a future date (when, if the child has lived there for three years and owns no other house at that time, there would be a C.A.T. exemption, though of course there would be stamp duty and there could be C.G.T. , unless one were to wait until death and leave by will).

These are only two possibilities. There are no doubt many more. I have no idea which, if any, method might have been utilised by the person mentioned, but it seems reasonable to assume that anybody buying a house for €9.6m would have access to the best available tax advice.
 
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