CGT/CAT on gifted and subsequently sold property

Unfortunately they bought it in the early 90's for a "token" amount from my mothers friend, so the difference between what they paid for the site and the value it was when given to me is around 100k. Which seems to make a quite substantial tax bill. So they were as good as gifted the site originally too as they didn't buy it for market value. So bought for 600 pounds in 1991, transferred to me with value 100k 2006, sold by me 42k 2013. I am panicking a bit and am truly grateful for the help I have received here.
 
So your parents made a gain of about 99k on transferring it to you. This is deemed to be a gain made by you in 2013.

You've made a loss of 58k.

So there's a net gain of 41k made by you in 2013.

Tax was probably due a couple of months ago, of about 13k, so you should pay it asap, and you'll need to file a return by October, but if you've calculated the tax you may as well just file the return and payment at the same time.
 
Unfortunately they bought it in the early 90's for a "token" amount from my mothers friend, ...... So bought for 600 pounds in 1991,.

What would the open market value of the site been when acquired by your parents in 1991?
 
"What would the open market value of the site been when acquired by your parents in 1991?"

I have no idea to be honest. It's a very small site in the countryside but a good well connected area, not isolated but it was only an eight of an acre! So it wouldn't have been worth much really back in the day I imagine but I have literally no idea?
 
"What would the open market value of the site been when acquired by your parents in 1991?"

I have no idea to be honest. It's a very small site in the countryside but a good well connected area, not isolated but it was only an eight of an acre! So it wouldn't have been worth much really back in the day I imagine but I have literally no idea?

In which case the amount they paid for it will probably be all that Revenue will accept the market value was at the time. Particularly since the person who they bought it from wasn't connected. £600 was probably about right for what was a small piece of agri land.
 
What would have happened if it was a house that was transferred to me, not lived in by me after the transfer, not rented out and then sold on? Just curious if the same laws apply or is it different?
 
Your parents relied on the provisions of S603A of the TCA 1997 to avoid paying Capital Gains Tax on the increase in value in the site from 1991 to 2006.

You relied on Section 83A SDCA 1999 to avoid paying stamp duty on the transfer.

You did not pay Capital Acquisitions Tax on the transfer as it was under the threshold.

Now if you were gifted a house by your parents they would have been subject to Capital Gain Tax on the gain based on market value unless the property was their PPR.

You would have been subject to 1/2 rate stamp duty on the market value.

You would have qualified for an exemption from CAT but would have to occupy the property for 6 years to keep the exemption.
 
Would the child qualify for an exemption for CAT anyway as it was parent to child gift from catagory a and no other gift had been made and it was under the threshold? Presume the 6 year rule would only come into play if it was over the threshold? Going to see a tax consultant week after next to help me get the paper work together and will give the tax man back his slice of the pie!
 
Apologies for resurrecting an old thread; but can anyone advise where on the CGT form you include the clawback of the relief claimed on the original transfer of a site from parent to child?
 
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