Early inheritance/Gift - tax?

[nicolapie]

Hello, My husband's mother has a house valued at 300k and she wants to sell to me and my husband for 200k. As far as we were aware she is entitled to give him a lump sum (like an early inheritance or gift) up to a value much more than that. Her solicitor is now telling her that is fine for 50,000 (of the 100,000 gain) but that I would need to pay tax on the other 50,000. He said that it could be avoided if house was in my husband's name but I can't see how we could do this as we would be getting a mortgage for the 200,000 and both our names need to be on it to get approved. Beside, we are married so anything he gets is half mine already. I really don't get this having to pay tax on the 50,000 gain. Is there any other way to do this?

 

[Joe_90]

That's not entirely correct if your MIL gives you a gift of €50,000 it's a class C threshold if you had not received a gift from this group previously then you €15,075 with the €3,000 annual exemption before you pay CAT.

Your husband of course can get gifts up to €225,000 without tax. So he could take the gift and then in due course transfer the difference to you. There is a provisions for dealing with this where the property has to be in joint names for mortgage purposes.

Dwelling house exemption would have to be considered!