CGT on property transfer

[InDept]

A query regarding tax on a property transfer:
Couple purchased house together in Ireland.
Couple split and agree that 1 partner will pay the other partner €25k for transfer of their right to property to other partner.
This was the PPR
Partner receiving the €25k now resides in Australia.
Title deeds will be amended to show 1 owner of property.
Is CGT payable by partner receiving €25k?

Thanks in advance.

 

[Joe_90]

What is the value of the property?

How long was it their PPR? How long have they owned it?

 

[InDept]

What is the value of the property?

How long was it their PPR? How long have they owned it?

Hi Joe_90
Property was purchased in 2008 for €345k with a mortgage of €313k
Current mortgage balance is €268k
PPR for 4 yrs.
Many thanks

 

[Jon Stark]

Hi Joe_90
Property was purchased in 2008 for €345k with a mortgage of €313k
Current mortgage balance is €268k
PPR for 4 yrs.
Many thanks

You managed to omit the most relevant piece of information that Joe asked you for, which is the current value of the property...

 

[InDept]

apologies, CMV = €300k

 

[mf1]

There's no CGT. There is no gain.

What I actually think the OP wants to know is what potential taxes arise here.

So, A and B bought a house together. We don't know if they were married/ civil partners or not. We'll assume not. Let's assume it was all done on a 50/50 basis.

The house is now worth 300K- it was bought for 345K

There is a mortgage of 268K on the house

A will remain in the house and assume responsibility for the mortgage. B is to receive 25K, be released from the mortgage and will transfer their share to A.

On the face of it, B is only entitled to 16K - half the equity in the property. Why are they getting more?

There will be stamp duty payable by A on the value of their share plus the equity of redemption - a concept I have always struggled to get my head around!

http://www.ohanlontax.ie/downloads/BreakupofaRelationship.pdf


mf