CGT and parent transferring house to child

[henry]

A father is planning to transfer ownership of a house to his daughter. The house is not the the father's PPR, and has been the daughter's PPR for the last 15 years. They want to legally transfer ownership.

Value of the house is c. eur 240k. I am happy that CAT will not be an issue, but CGT may be for the father.

Are there any exemptions available in this situation ?

thanks.

 

[Ants09]

cgt payable by reference to an event which gives rise to a charge of cat is available for credit against such cat, if on or after 6/4/88 gift tax or inheritance tax is charge on a property and the same event constitures a disposal for cgt purposes the cgt in so far as it has been paid shall be deducted from the net gift tax or inheritance tax as a credit against the same provided that the amounts deducted shall be equal to the lesser of the net gift or inheritance tax or cgt under FA 85 Section 63, FA 88 section 66 and CATCA section 104

where cat is chargable more then once in respect of the same property on the same event the net tax payable on an earlier event will be allowable as a credit tax on the later event FA 85 section 62 and CATCA s105

hope this helps you

 

[henry]

Thanks Ants09,

I am happy that CGT would be allowable against any future CAT.

I was wondering if there was any way to reduce the immediate CGT charge to the father.

 

[Graham_07]

Any costs of the disposal are allowable.

Also if he added to the property while in his ownership the additions would be allowable on to the cost as enhancement expenditure. These would all be deductible form the value on transfer. He would be also allowed indexation ( up to 2003 ) on the cost and any enhancement expenditure. These would all help to reduce the net chargeable amount.