Gift from parents & buying house with girlfriend

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Pickupawedge

Registered User
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Hi,

This year I was gifted 200k from my parents to buy a house.

I am currently looking at getting a mortgage with my other half for the balance. I have 30k in savings and my partner has 10k. We will be looking for a mortgage of circa 200k which should not be an issue given combined salaries of 80k and good savings/credit history.

My 2 questions are as follows.

1. Is there any paperwork that needs to be completed on my own or my parents end to satisfy revenue requirements? I know that it falls under the 225k threshold but I am unsure if I need to fill out any documentation.

2. If I was to get a mortgage with my other half and buy a house for 400k with me putting up the 200k that was gifted to me would they have any legal entitlement to the cash sum paid if both our names were on the mortgage/deeds?

Thanks
 
You absolutely must do an agreement with your other half recording the % of the property you own.

For example

|total|him|her
Deposit|€240|€230k|€10k
Mortgage|€200k|€100k|€100k
Total|€440k|€330|€110k
% ownership||75%|25%

If you fall out after a few years, you get 75% of the property and she gets 25%.

If you don't do the deal, she will want 50% of the property.

While this might not be very romantic, it will save you all the hassle which is outlined in this forum:

Issues arising from joint mortgages
 
I assume that Capital Acquisitions Tax is a self assessment tax.

I think you would have to declare the gift even though there may be a NIL assessment.

Noting the complexity of CAT you should note that any other gifts from any other source (the famous long lost Uncle in Canada) would see a liability arise then.

Also the Bank would want some documentation so that your folks don't claim that they part funded the purchase and that it was a loan not a gift.
 
WizardDr said:
Noting the complexity of CAT you should note that any other gifts from any other source (the famous long lost Uncle in Canada) would see a liability arise then.
Click to expand...

???

Wouldn't they be classed under a separate threshold to gifts/inheritances from parents, and may well be exempt altogether?
 
The CAT limits are not separate limits for each category of gift or inheritance.

For example:

If you took a gift from the highest Class - say €100k.

This would then mean that any gift from the other Classes would be taxable as the gift taken exceeds those thresholds. They are not separate unfortunately. And at 30%+ they are potentially penal, despite the abolition of the Penal Laws some time ago.
 
WizardDr said:
The CAT limits are not separate limits for each category of gift or inheritance.

For example:

If you took a gift from the highest Class - say €100k.

This would then mean that any gift from the other Classes would be taxable as the gift taken exceeds those thresholds. They are not separate unfortunately.
Click to expand...

Completely incorrect. They are entirely separate.
 
So great one kiindly explain the thesholds as to how they work now.

Kindly silly pointing out an error without correcting it.
 
I stand corrected:


Benefits taken on or after 5th December 2001:

All benefits taken from the same Group Threshold since 5th December 1991 are added together to calculate the tax on the latest benefit.

Calculation in respect of the latest of a series of benefits taken since 1991:

Aggregate all prior benefits within the same group threshold as the current benefit with the current benefit and calculate the tax on the total.
Aggregate all prior benefits within the same group threshold as the current benefits, excluding the current benefit and calculate the tax on the total.
Subtract tax at (2) from tax a (1) - this gives tax referable to the current benefit.

This calculation applies where aggregation applies in relation to same group/class threshold only.
 
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