Buyiong family home after inheriting

6

6th floor

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Hi all. Hope someone can help.

Fathers will was as follows,

Sum of money divided equally between 3 children.
Family home left to all 3 children.

One child(me) wants to buy the family home as a ppr. Id be selling my current home to do so, there is no objection from siblings.

2 questions:

1. What are the stamp duty implications involved for me and my wife, as i own a third of the property so do i simply pay stamp on the other 2/3rds?

2. Say the property is worth 150k, can i buy out the others for 100k or do i need to pay the estate the full 150k and get my 50 back afterwards?
 
1. You will pay stamp duty on 2/3rds of value, at a reduced rate.
2. You pay 100k to the estate which then distributes it to the other 2.

One question to be resolved, is the value of the property - obviously each of you will have a different opinion but you will need to come to some form of agreement on the value which must be at or near to market value - otherwise the revenue may object and treat any under/over value as a gift between siblings.
 
thanks for that jp.

market is pretty dead in this area, i wonder would a valuation done by each side be sufficient for revenue purposes?

also, what do you mean at a reduced rate?
 
I was executor for my mother's estate in similar circumstances and we got valuations from 4 different agents and then agreed a value amongst ourselves. However, this was in different times ...

Consanguinity relief
This relief applies to transfers of land, buildings etc. to certain relatives, e.g. parent, grandparent, step-parent, child, foster-child, adopted child, brother, sister, half-brother/sister, aunt, uncle, niece, nephew. Duty is charged at half the normal rate of duty applies so if house purchased for € 150,000 stamp duty is due at 1/2 of 7% on the portion over €125,000 ie €875
 
Consanguinity relief will only apply if the transfer is from your siblings to you in your sole name. If your wife's name is on the transfer the relief will not apply. However if the value of the property transferred is less than 125000 then there will be no stamp duty.
 
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