Claiming buiness relief by gifting rental properties to chilldren

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Dub_Steve

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If its a rental property it would classify as a business asset which has much higher relief than gifting to your kids. If you google revenue business relief cat 4 you should be able to get more information. (new account, can't post a link)
 
Dub_Steve said:
If its a rental property it would classify as a business asset which has much higher relief than gifting to your kids. If you google revenue business relief cat 4 you should be able to get more information. (new account, can't post a link)
Click to expand...

Revenue (supported by case law) do not accept that rental property constitutes a business asset. Unless you have a precedent to offer?
 
Dub_Steve said:
If its a rental property it would classify as a business asset which has much higher relief than gifting to your kids. If you google revenue business relief cat 4 you should be able to get more information. (new account, can't post a link)
Click to expand...
Interesting but I'm with Jon on this one, rentals don't qualify for business asset relief.
 
I wasn't aware there are exceptions to the what constitutes a business asset. Thanks for the reply. Do you have a link? Does it only apply to landlord tenant situations? I was wondering if a rental / private residence was converted to a b&b would it qualify as a business asset
 
http://www.revenue.ie/en/about/foi/s16/capital-acquisitions-tax/cat-part12.pdf

Pages 12 to 20, and specifically around 17/18/19.

Re the B&B, it's an interesting idea, but the value of the property would have to distinguish between the value of the business and the value of the part not used wholly or mainly as a B&B. Also, the beneficiary would have to continue to use it as a B&B for 6 years following the receipt of the gift. I'd suggest everyone involved would want to be REALLY tax averse to go to those lengths.
 
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