Transfer the family home now

[dubda]

Hi,

My elderly parents wish to give over our family home (along with it's 15 acres!) while they are still alive to my unmarried sister who still lives with them at home. They are worried however that my sister would incur a very high capital gains tax bill from the transfer in ownership.

I was under the impression that if it is your family home, and that you had lived there all your life that there would be very little capital gains to be paid, or does it depend on the valuation of the property & land?

Hope someone can advise.

Thanks in advance,

dubda

 

[huskerdu]

The house and the 15 acres are different things.

In general, your sister can get a gift of approx €500K from her parents before
Capital acquisitions tax (CAT) will apply.

There is a excemption for being given the house that you live in.

If she has lived in the house for a number of years and doesn't own any property
and doesn't sell the house, she can get it without paying CAT.

However, the 15 acres will not be part of this. If this is worth over 500K, she will
have to pay some CAT.

 

[Vanilla]

There are also potential charges to CGT and stamp duty on this transfer.

If your sister qualifies as a first time buyer she may get exemption from stamp duty on the transfer of the house, but there would still be stamp duty on the value of the land, halved for consanguinity relief. Stamp duty depends on the value.

CGT= none on the house as it is your parents PPR, but again could be an issue on the land, depends on the value now and when they obtained it.