CAT - transfer of land to couple when not married

T

thos

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Hi folks,
I'm hoping someone can help me out here.

My girlfriend and I are looking to build a house on some land that her parents will gift to her. The land is valued at approx €150-200k, and as I understand it this falls under the Group A threshold and can pass from her parents to her without exposing any tax liability for either party.

However, it is looking likely that we will need both of our incomes to satisfy the mortgage, and the bank will then require that the land and house are in both of our names. Herein lies the problem. As an unmarried couple we will be liable for capital acquistions tax on the for the transfer from her name to both of our names.

Can anyone tell me any ways we can help avoid this?

If we managed to get the mortgage in her name only, and were to marry at some point in the future, what would the tax liability be on the transfer upon marriage? Is there any timings around this?

We will be seeking formal legal advice befor doing anything, but just looking for an idea of what to expect at this stage.

Thanks,
Tom
 
Banks used to allow mortgage in joint names and deeds in one to solve this problem. Not sure if they still do, independent legal advice is usually needed for person not on deeds as they are disadvantaged by owning the debt but not the asset. Check with bank and solicitor. Deeds can be transferred to joint names after marriage and 2 yrs after initial transfer, not 100% sure about that time span but there a time stipulation, your solicitor will know.
 
Your parents can gift an acre free of charge for you to build a house on and you pay no tax. Our situation a couple of years ago.

The banks will insist on separate legal advice as you will if the land is in your wife/partners name will have no legal claim to it. That is what they advised us.
 
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