CGT on property transfer from father to daughter?

[gwen-ten]

Hi

I would very much appreciate if someone could confirm something for me ...

My dad is selling my husband and myself a slice of his garden. Site is valued at E300K. We're paying E200K for it.

I realise that there were some changes in the recent Finance Bill relating to stamp duty now being payable of this type of transfer. Question I have relates to CGT.

My understanding is that my dad is not required to pay CGT on this, but I've received conflicting advice on this recently.

Any views would be gratefully appreciated.

Thanks.

 

[mandelbrot]

Hi

I would very much appreciate if someone could confirm something for me ...

My dad is selling my husband and myself a slice of his garden. Site is valued at E300K. We're paying E200K for it.

I realise that there were some changes in the recent Finance Bill relating to stamp duty now being payable of this type of transfer. Question I have relates to CGT.

My understanding is that my dad is not required to pay CGT on this, but I've received conflicting advice on this recently.

Any views would be gratefully appreciated.

Thanks.

Taken from the Revenue guide to CGT: (http://www.google.ie/url?sa=t&sourc...1O4ISlUog&sig2=NeCtxx3QUto9US3GcGkO5w&cad=rja)

"6. Transfer of a site from parent to child
There is an exemption from Capital Gains Tax on the disposal of a site from a parent to a child (including certain foster
children) where the transfer is to enable the child construct a principal private residence on the site. The market value
of the site must not exceed €500,000 (€254,000 for disposals prior to 5 December 2007). For transfers on or after
1 February 2007 the area of the site (exclusive of the area on which the house is to be built) must not exceed
0.4047 hectare, i.e. one acre.
The term “disposal” includes a simultaneous disposal by both parents to their child.
If the child subsequently disposes of the site without having occupied a principal private residence on the site for at
least three years, then the capital gain which would have accrued to the parent on the initial transfer will accrue to
the child in addition to his/her own gain. However, the gain will not accrue to the child where he or she transfers an
interest in the site to a spouse."

The above speaks for itself to me, but my advice to you is GET THE ADVICE OF A COMPETENT PROFESSIONAL.