Two elderly straight men getting married to reduce CAT

Brendan Burgess

Brendan Burgess

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https://www.rte.ie/news/ireland/2017/1215/927697-tax-marriage/

Michael O'Sullivan has been best friends with his 85-year-old neighbour Matt for almost three decades, and is now his carer.

Speaking on RTÉ's Liveline on Radio 1, Mr O'Sullivan said that Matt told him he was planning on leaving his house in Dublin's Stoneybatter to him when he died.

Mr O'Sullivan said this posed a potential problem as "because of tax reasons I'd have to pay half of that to the Government" in Capital Acquisitions Tax.

However, people who are married or in civil partnerships are exempt from Capital Acquisitions Tax on items of inheritance from their partner.

Speaking on the same programme, Matt said "he's my best friend, we're getting married so whatever I have in my home he can have."
 
B, I nearly spilled my corn flakes when I read this. Do you think Revenue will clamp down on this sort of thing?
 
It's going to be a difficult one to prove whether this type of marriage is "official" or not!
 
In all seriousness, if his carer is living with him, the Dwelling House Exemption would probably apply and exempt the property...
 
fistophobia said:
B, I nearly spilled my corn flakes when I read this. Do you think Revenue will clamp down on this sort of thing?
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I doubt Revenue could clamp down on it. Transfers between spouses are not subject to any tests for romantic involvement. So far, Irish courts consider marriages of convenience to be valid, even though registrars are now allowed to consider whether they are designed to circumvent immigration rules. [broken link removed] likewise are limited to questions of immigration. It's something I've idly considered myself when thinking about ways of transferring assets to a sibling tax free. In that case, of course, there are additional barriers concerning consanguinity. So I'd need to marry a mutual friend, gift them the assets, divorce, have them marry the sibling and do the same gift/divorce thing. It's all a bit messy, but in principle sounds like a great legal approach to tax planning.
 
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Could be interesting if they ever fall out and one or both want a separation/divorce...
I'm sure that everybody thinks or hopes it's forever when they enter into marriage.
 
dub_nerd said:
I doubt Revenue could clamp down on it. Transfers between spouses are not subject to any tests for romantic involvement. So far, Irish courts consider marriages of convenience to be valid, even though registrars are now allowed to consider whether they are designed to circumvent immigration rules. [broken link removed] likewise are limited to questions of immigration. It's something I've idly considered myself when thinking about ways of transferring assets to a sibling tax free. In that case, of course, there are additional barriers concerning consanguinity. So I'd need to marry a mutual friend, gift them the assets, divorce, have them marry the sibling and do the same gift/divorce thing. It's all a bit messy, but in principle sounds like a great legal approach to tax planning.
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A bit messy is an understatement. I don't see what could possibly go wrong in all of that...
 
dub_nerd said:
I doubt Revenue could clamp down on it. Transfers between spouses are not subject to any tests for romantic involvement. So far, Irish courts consider marriages of convenience to be valid, even though registrars are now allowed to consider whether they are designed to circumvent immigration rules. [broken link removed] likewise are limited to questions of immigration. It's something I've idly considered myself when thinking about ways of transferring assets to a sibling tax free. In that case, of course, there are additional barriers concerning consanguinity. So I'd need to marry a mutual friend, gift them the assets, divorce, have them marry the sibling and do the same gift/divorce thing. It's all a bit messy, but in principle sounds like a great legal approach to tax planning.
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torblednam said:
A bit messy is an understatement. I don't see what could possibly go wrong in all of that...
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Not nearly as messy as giving a third of your assets to the government unnecessarily.
 
While the younger man was the carer I don't think he was living with the older man, I understood from the interview that he is actually in another relationship. The older man too was asked what about if the younger man met someone and wanted to get married, his answer gave the impression that he would not be around for long, I wondered was he ill based on the way he answered.
 
Gordon Gekko said:
Revenue should insist that marriages are consumated...
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With video evidence ? ;) :D

Just imagine the Revenue decide to investigate the two lads, to see if their relationship is genuine - what do they do, ask for the last 4 years love letters, holiday photos etc ?


In honestly, it took me a while to stop laughing about this story, but it's great stuff really ....

Just out of interest, has anyone check the legality of having both a wife and a husband ? ... odds are, our bigamy laws were written so long ago that it never occurred to the legislators that this may some day become a realistic possibility, so the legal wording may not cater for this scenario. Tax consultants could be suggesting some very interesting new arrangements, if it's a runner :D
 
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MrEarl said:
Just out of interest, has anyone check the legality of having both a wife and a husband ? ... odds are, our bigamy laws were written so long ago that it never occurred to the legislators that this may some day become a realistic possibility, so the legal wording may not cater for this scenario. Tax consultants could be suggesting some very interesting new arrangements, if it's a runner :D
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going by some of the odd laws in Ireland over the years around rape it would not surprise me if the above could happen but more then likely i would imagine the bigamy laws are wrote in such as way that it sees marriage as it is defined in the marriage law (ireland) Amendment act 1863. so once that act is kept updated its fine. But part of me want it not to updated so we have a bit of entertainment
 
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