Capital Tax before inheritance ?

Discussion in 'Wills, inheritances and gifts' started by Earl Grey, 20 Apr 2018.

  1. Earl Grey

    Earl Grey Registered User

    Out of blue, my friend confidence in me that he brought a house, five years ago "buy to let" rent house to his son, paying €600 a month, my friend paying mortgage cost €1,000 avenge a month for 10 years. Five years ago friend brought house for €130,000, mortgage 100,000, telling me that in five years time when mortgage is paid off, his house today is worth he guesses about €230,000 give his son the owner of the house as inheritance.

    l cannot get my head around it.

    The question.... does friend have to pay Capital Tax before giving the house to him. €100,000 profit ? inheritance threhold to his son is €320,000.

    No mention about Tax relief if he is entitle to it ?
  2. RedOnion

    RedOnion Frequent Poster

    Yes. Son will also have to pay stamp duty.

    However, son can offset the CGT against CAT.

    There was another post on the topic recently, but I can't find it right now.

    There might be other tax complications around the current rental arrangements, so it's worth talking to a professional, (especially if there are potentially future inheritances).
  3. Vanilla

    Vanilla Frequent Poster

    RedOnion likes this.