Details first:
- I am a FTB
- My offer of 250K has been accepted on 2nd hand house
- Mortgage arranged of 200K
- Deposit of 50k (savings of 24K sterling + my friend will make up the shortfall)
I'm told that revenue are quite fussy as to where the funding comes from (to avail of a stamp duty exemption), so will there be an issue with the following:
(1) I intend to f/x my 20k sterling to eur, privately with my girlfriend. i.e, I give her my 24k sterling and she gives me 30k euro (assume 1.25 f/x rate for simplicity).
(2) My friend (girlfriend's brother) will give me an 'unconditional' gift of the shortfall of 20k. This is not a loan and nothing whatsoever (money/boats/car/etc) will be returned to him as repayment.
I'm sure (1) is ok, as it is in effect my money and where I exchange my money is my business, provided market rates are followed within reason.
I need reassurance though???????
Regarding (2), I'm not so sure. My friend is my girlfriend's brother and will indeed be my brother-in-law in the future. As my girlfriend (not a first time buyer) will obviously have an interest in the property once we are married, I worry that Revenue will not look favourably on the 20k gift from her brother to me, because of the family connections.
I realise that an accountant/tax advisor would be beneficial here, but your initial thoughts would be welcomed before I do that.
- I am a FTB
- My offer of 250K has been accepted on 2nd hand house
- Mortgage arranged of 200K
- Deposit of 50k (savings of 24K sterling + my friend will make up the shortfall)
I'm told that revenue are quite fussy as to where the funding comes from (to avail of a stamp duty exemption), so will there be an issue with the following:
(1) I intend to f/x my 20k sterling to eur, privately with my girlfriend. i.e, I give her my 24k sterling and she gives me 30k euro (assume 1.25 f/x rate for simplicity).
(2) My friend (girlfriend's brother) will give me an 'unconditional' gift of the shortfall of 20k. This is not a loan and nothing whatsoever (money/boats/car/etc) will be returned to him as repayment.
I'm sure (1) is ok, as it is in effect my money and where I exchange my money is my business, provided market rates are followed within reason.
I need reassurance though???????
Regarding (2), I'm not so sure. My friend is my girlfriend's brother and will indeed be my brother-in-law in the future. As my girlfriend (not a first time buyer) will obviously have an interest in the property once we are married, I worry that Revenue will not look favourably on the 20k gift from her brother to me, because of the family connections.
I realise that an accountant/tax advisor would be beneficial here, but your initial thoughts would be welcomed before I do that.