CGT/CAT/PPR

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Plummet

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Hi, I am wondering if someone can help me with a question please, we transferred 50% of our home to our son several years ago, we want to transfer it back, our son is in agreement with this, is he liable for CGT on the transfer, I know stamp duty is applied on the transfer but I am not sure about capital gains tax, thanks in advance
 
What do you mean by "you want to transfer it back"?

Do you mean, your son wants to transfer it back?

Yes, he would be liable to CGT and you might be liable to CAT

You would need to post figures for a better answer
 
jpd said:
What do you mean by "you want to transfer it back"?

Do you mean, your son wants to transfer it back?

Yes, he would be liable to CGT and you might be liable to CAT

You would need to post figures for a better answer
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He’s living there so PPR relief probably applies, assuming he’s always lived there.
 
From Revenue:
You will be exempt from Capital Acquisitions Tax (CAT) on receipt of a gift of a dwelling house if, at the date of the gift:

  • you are a dependent relative of the person making the gift because you are:
    • unable to maintain yourself due to being permanently and totally incapacitated by mental or physical infirmity
    • or
    • aged 65 years or over at the date of the gift
Click to expand...

Are you both over 65?

Otherwise what is the reason for your son gifting you the property? It might not be wise in your overall estate planning context.
 
Thanks to everyone for taking the time to reply, really appreciate it, we got poor advice a few years ago and transferred 50% of our house to our son, now we want to reverse the process, our son has lived with us all his life and still does except for a few years when he went to Australia, we want to downsize our home and thought it would be easier and less costly to do if we transferred it back into our name, maybe we need to see a tax specialist, we are both under 65,
 
I’d sell the house and take a loan from him to help fund the purchase of the new place. Or he could just take a share in the new place.
 
Plummet said:
Hi, I am wondering if someone can help me with a question please, we transferred 50% of our home to our son several years ago, we want to transfer it back, our son is in agreement with this, is he liable for CGT on the transfer, I know stamp duty is applied on the transfer but I am not sure about capital gains tax, thanks in advance
Click to expand...
Impossible to advise properly here without knowing your circumstances and in particular the motivation for your previous transfer of the 50% share to him, the timing of that transaction, and the value of that share then and now.

It's quite possible there is a straightforward solution to unwind that transfer but in the absence of specifics, it seems pointless and possibly counterproductive to speculate.
 
@Plummet

Why complicate things by him transferring back to you? You’ll just incur stamp duty.

Just sell the house and buy a smaller one with equal shares. With the leftover funds if he wants he can gift €3k a year to you each with no CAT under the small gift exemption. Or you can set up some loan arrangement.
 
Dr Strangelove said:
@Plummet

Why complicate things by him transferring back to you? You’ll just incur stamp duty.

Just sell the house and buy a smaller one with equal shares. With the leftover funds if he wants he can gift €3k a year to you each with no CAT under the small gift exemption. Or you can set up some loan arrangement.
Click to expand...
Yes I think this is what we will do, I just wasn’t sure if we would have to pay CGT on the sale, thanks again everyone for all the valuable input
 
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