Buying house from sibling and market value issues

S

STEINER

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John lives in a rented flat and has inherited a shell of a house from an uncle. John has never lived in this house, doesn't want it as it needs a lot of work and just wants money instead.

John's brother Paul would like to buy the house, modernise it and live in it and John is happy to sell it to him for a reasonable amount. John is not looking for the maximum possible price for this. The value is about 150k due to extensive renovation needed.

As brothers are connected persons, how do they avoid gift tax? Is it a case of getting one valuation and using that as a guide?
 
If it's sold at the market price, there is of course, no gift tax.

It would be very difficult to judge the market value of a shell of a house.

Paul can pay up to €30k less than the market price and still not pay CAT - if he has not used up his CAT threshold.

Brendan
 
A formal offer of 150k was received from a local authority.

The 30k CAT threshold is a useful cushion. Food for thought anyway.

Thanks for reply.
 
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