CGT on Gifted Property

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Unknown_Joe

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Hi folks, I’m looking for some advice on my parent's potential CGT bill for gifting a home to me. Namely the use of a property valuation at the end of the time that the property was their PPR to calculate the gain on the property.



Some details:

Property purchased in 1982 for £22,000



PPR for 20 years, with a 2002 valuation completed for the property prior to it being rented. This valued the property at €220,000



Property was rented or vacant for the next 20 years, all rental periods were captured in tax returns & RTB.



Gifting the property to their child, and it has been valued in 2022 at €250,000



Is the gain for the CGT possible to be calculated using the valuation completed in 2002, so the 30,000 difference? Or will it be the indexed gain on the initial 1982 purchase price (around 85,000 to 250,000; less % of years PPR)?
 
2002 is irrelevant.

It’s the latter, i.e. 1982 indexed up to 2022 (mindful that indexation doesn’t apply for 2003 et seq), take account of expenses, do the PPR relief part (remember the ‘extra’ year so crudely 19/40 taxable), and ensure that any other reliefs/exemptions are claimed.

So be mindful of the CGT/CAT offset if the CAT threshold has been used. Basically if CGT and CAT arise on the same event, you get credit for the CGT against the CAT.

And don’t forget the Small Gift Exemption, which could be €12,000 if it’s couples involved.
 
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