Capital Acquistion Tax re House transfer

Husssy

Registered User
Messages
48
Hi All

Looking for advice in relation to following:

A situation has arose in that my father has suggested that he and my mother would change houses with my wife and I, as they want to downsize and we need to upsize!. I am wondering what the tax implications would be for my father and myself. I am aware of the threshold of €280000 from father to son .


1. Our own house( both names) is worth €210000( current valuation)- tracker mortgage 0.8% of €150000 left on property.

2. Father/ Mothers house is worth approx €300K, no mortgage on property.

We will not have to pay my father any compensation/ lump sum for their house.

My queries would be:

1. As the net effect would be a gift of €90,000 (300k - 210K), the gift would be within the threshold from father to son, however it would have to be gifted to me alone so as to avoid my wife paying CAT. Would this be an issue in relation to a joint application( need both salaries) for the tracker retention mortgage ?(0.8% + 1%applied by AIB).

2. I presume both properties would be subject to the 1% stamp duty .

3. Would a better option be for my father to gift me the 90K in a cash gift (if he has it!) and then use this money to pay him for house.

Much appreciated
 
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