Buying a property in N.Ireland from Parents..

[bonvoyage123]

Both my parents and I are residents in Co Wicklow. We have a holiday home which I am looking to purchase in Northern Ireland and have a few questions in relation to this purchase.

Given that we are residents South of the border I am assuming that they must pay the capital gains on the difference between purchase price and agreed selling price.

Question 1 : Would I pay the Northern Irish stamp duty or the one charged by the Irish revenue. Currently 7.5% given value of house.

Questions 2 : Is there a break in stamp duty for selling between relatives.

Question 3 : I previously inherited a house from a friend of the family. Then purchased and subsequently sold an apartment in Wexford. Am I technically considered a first time buyer given that the house i live in currently was inherited. Sounds stupid I know however not sure on this one and have scowered the web to find the answer.

Question 4 : How does one come to an agreed selling pricing where it is my interests to keep the value at the lower side of the valuation scale and my parents wish to help me out in this respect. Does one need an estate agent to value accordingly and provide documentation to this effect..

Would appreciate any advice that one might have.

Sincerely

Stephen

 

[Glenbhoy]

CGT is normally payable in the country where the asset is based, so in this case in NI.

1. UK stamp duty

[FONT=Verdana, Arial, Helvetica, sans-serif]Purchase price of property[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]Stamp Duty Payable[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]Up to £120,000[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]£0[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]£120,001 to £250,000[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]1%[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]£250,001 to £500,000[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]3%[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]£500,001 plus[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]4%[/FONT]

2. Unlikely

3. Definitely not a FTB

4. Unsure, issues here with CAT as well probably.

Note: all answers above are speculation, you should get advice from a professional, it'll be well worth it in the long run.

 

[bonvoyage123]

Thanks for that.. did get a prof to look into this. CGT is payable in Republic. Not First time buy. Stamp duty payable in the North at 4% given approximate value of property. I need to get actioneer or valuer to value property at market value and CGT/Stamp duty is based on that. Thanks for advice though.