captial gains tax and welfare benifits

I

irishbarman

Guest
my parents are in thier 60,s and so get free phone discount esb elctric etc they are selling me thier house but will be living there till they die which means my parents will have to pay captial gains tax will this mean he will lose his benifits and his medical card???
 
Presumably, your parents are on state pensions and gettign the secondary benefits associated with that. When they sell the house to you, their poisiton depends on whether these pensions are means-assessed or not. However, there are disregards when it comes to selling your house when on a non-contributory pension. If they sell their home, (doesn't matter whether it's to you or not or whether CGT is payable) the proceeds of the sale would normally be taken into account for Sw purposes. However, the first €190,460.71 of the sale proceeds is not taken into account if they are on a state pension. See here
 
Why Capital Gains Tax? I would have thought they should get principal private residence relief.
They will be getting a gift from you if you let them stay in the house rent free.
 
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