CAT on gifted site

Discussion in 'Wills, inheritances and gifts' started by lbrazil, 30 Oct 2018.

  1. lbrazil

    lbrazil New Member

    Posts:
    1
    Hi There

    My fiance was gifted a site in Dublin (less than 1 acre). We got this land valued at the time (2 years ago) and the value of the land was €175,000. Since then, we got planning permission and both took out a mortgage for €336,000 to build a house. we have built the house and are now living there. Our solictor did the transfer date of the land (Gifted from my fiances mother) to this year so that we wont have to pay the CAT until next year 2019 as we are due to be married and just cannot afford everything at once. I am aware my partner is under the gift from parent to child threshold but I have been advised I will incur CAT. My fiance could not get the mortgage out on their own so it was not an option at the time to leave me off the mortgage (which would have avoided the CAT for me). Is anyone aware of any way around the CAT? I read online on the revenue website that when calculating CAT, you can deduct any money spent by you which adds asset to the value of the property. would this include that because we took out a mortgage, spent savings etc that I could deduct this and potentially left with no tax to pay? Many Thanks
     
  2. mf1

    mf1 Frequent Poster

    Posts:
    4,082
    There are a couple of gaps in the information here..............

    Is the property in both names? Or just the mortgage?

    Have you used the value of the site (175K) for the transfer of the property -which now has a house on it so its worth more than 175K?

    Have you taken tax advice on the CAT? What was that advice?

    And how does building a house on a site valued at 175K, which increases the value of the property, do anything to assist you other than put Revenue on Red Alert?

    mf