If this is the dwelling house exemption your talking about because it's a gift you would be getting and not an inheritance apart from you living there for 3 years there is another condition to satisfy. The parent giving you the house must have had to rely on you during the 3 years due to old age or infirmity so they would have to be living in the house as well.
It appears they won't be as they have their own home (600k one). I also think the joint ownership will be a problem too.
My parents own their own property worth approx €600k and a second property worth approximately €200k. In order to get around inheritance tax and help me with buying a house we are thinking of doing the following (example figures given)
When my parents sign over the house to me will it be exempt from inheritance tax since I have been living there for 3 years?
- Parents sell second property for €200k
- House worth €500k is purchased (200k from them, 100k from my savings, 200k mortgage)
- Ownership agreement splits house 3:2 in my favour.
- After three years they sign their ownership over to me.
Thanks
Will your parents continue to live in their own property, i.e., the house that it is proposed to purchase for €500,000 will not be their PPR?
Yes they will. The 500K property will be a totally new property, not the one that they currently live in. The reason that I brought up their own current house was to show that there will be a CAT problem at some point.
The whole plan seems a bit contrived to me. Are you 100% certain that it won't fall foul of general anti-avoidance rules?
(Btw, if i had such a scheme up my sleeve, the last thing I'd be doing is putting it is on the internet for Revenue & all to see.)
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