Buy a house - need help from mother - gift or joint purchase?

[happypat]

Hi all

House - €350k
Savings - €150k
Mortgage €100k (I have an income of €30k)
Leaving shortfall of €100k - my mother is prepared to give me this as an 'advance inheritance' so to speak.

From what I gather, I can get this gift within a lifetime allowance of €320k from her without paying any tax. (Otherwise I was thinking she might have to jointly purchase the house with me).

If I'm correct, I would welcome any advice in general overall - as I say, my income is €30k and I assume, with zero loans and my savings, and zero dependants (I'm currently living at home), what would people advise me to do in terms of proceeding? (incl. directly going to bank or going to mortgages.ie etc)

many thanks.

 

[Protocol]

People who give gifts don't pay CAT, it's the recipient who may have a tax liability.

 

[Protocol]

Well start by applying to banks for AIP, and see what they say.

 

[happypat]

People who give gifts don't pay CAT, it's the recipient who may have a tax liability.

Thanks protocol, but am I correct in saying I can get gifts tax free up to the €320k?

Well start by applying to banks for AIP, and see what they say.

Yes, looking at 5yr fixed with BOI at 3.2% and 2% cash back thanks.

 

[Palerider]

The 320k odd you mention is capital acquisitions tax threshold for inheritance purposes, you can get the €100k now but it reduces what a parent can leave to you in the future, in other words you can directly inherit from your parents €320k ( not sure what current limit is ) with no interest from Revenue.

What age are you and your parents, I ask because if your folks are getting up the ladder it would not make sense for you to buy your own home if you were going to inherit the patents house, as you live therenow it would fall to you with no CAT, some tax planning may be required.

If you have your own house my earlier statement holds.

 

[Protocol]

Thanks protocol, but am I correct in saying I can get gifts tax free up to the €320k?

Yes.

It's a lifetime limit.

 

[Protocol]

If I'm correct, I would welcome any advice in general overall - as I say, my income is €30k and I assume, with zero loans and my savings, and zero dependants (I'm currently living at home), what would people advise me to do in terms of proceeding? (incl. directly going to bank or going to mortgages.ie etc)

many thanks.

Get all paperwork together:

payslips
P60
all bank statements
CC statements
proof of all savings
proof of regular saving

Go into banks.

Apply for AIP.