CAT/Gift Issue

A

AndrePirlo

Registered User
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My parent and their 3 siblings recently inherited a property. They plan to sell the property so their threshold of €130,000 (€32,500 x 4) would apply as far as I'm aware?

If I were to buy the property and my parent gift me their share resulting in me purchasing 75% of the property and receiving 25% as a gift, as a result when the Executor pays the tax from the sale would the CAT threshold be affected or would their tax free amount remain at €130,000?
 
Not sure why OP thinks that the sale/gift would alter the CAT threshold for the beneficiaries?

If the Probate value was 250K, and that is what it is being sold for, that means each beneficiary has a benefit worth 62.5 K and a corresponding CAT liability of c. 10K.

OP buys for 187.5 K ( i.e the shares of three of the beneficiaries) and pays stamp duty on the full price of 250K.

If the Probate value and current market value differ, there may be a CGT liability for all of the beneficiaries.

mf
 
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