What?
The sale of one's home (PPR = Principal Private Residence) is normally exempt from Capital Gains Tax (CGT) unlike the sale of most other capital assets. In this case the sale of one partner's share in a PPR (if it is so) would be treated similarly I presume.
This does not sound right to me. Firstly I suspect that the sale of the share of a PPR like this is exempt from CGT so any issue of taxation is moot anyway, and secondly I don't know of any way for a person to avoid CGT (as opposed to income tax) using a pension. I presume that the term "trust fund" is being used inaccurately and erroneously here too.I was just speaking with someone here in the office and they think CGT would come into play unless the person placed the money in a pension trust fund for a certain period of time?
20%.what % is CGT
This does not sound right to me. On what basis are they claiming this to be the case?
Totally different case. In general the sale of a property which was always one's PPR is totally exempt from CGT. In the original case mentioned in your first post above I believe that this remains the case. The person in question should get professional advice if unsure.My mother built a granny flat at the side of my sisters house. My sis then sold the house and my mother found temp accomodation. Sis paid my mother what it cost her to build (€70K) when house was sold. Mother had to pay the tax man. dont ask me what it was but i know she paid some kind of tax.
This was what made me think that maybe one would have to pay out to tax man no matter what lump sum was received..
I was just speaking with someone here in the office and they think CGT would come into play unless the person placed the money in a pension trust fund for a certain period of time? what % is CGT
I hope it wasn't an office of tax advisors
I hope it wasn't an office of tax advisors
It is clearly the Office of Silly Tax Advice.
Clubman is right albeit that I don't think that it is an exemption based on it being the sale of the PPR but as a gift from spouse to spouse.
Why not? Isn't that what it is? The former spouse who is vacating the family home is selling their share (half) to the other spouse who will remain in situ?Clubman is right albeit that I don't think that it is an exemption based on it being the sale of the PPR
shootingstar said:isnt gift from spouse to spouse taxed once it hits 38k per annum or something like that anyway...
If gift tax was relevant here (which I don't believe that it is...) if they have already divorced then surely the relevant gift tax exemption threshold is that which applies between unrelated parties/strangers (€25K) rather than that which applies between spouses (no limit?)?
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Which is basically what I said?Jaysus lads!
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If this is all done in the context of a Divorce and subsequent transfers as contemplated by the Divorce then it is treated as a matter between spouses with all the exemptions that go with that. So - no CGT, CAT
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I don't think so. It would presumably qualify for PPR sale exemption from CGT?
If gift tax was relevant here (which I don't believe that it is...) ...
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