inheritance tax

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bub83

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I am living in a house that is in my fathers name for the last 6 years, i am married with two children, before i meet my husband i paid for the house to be built and decided to keep it in my fathers name when i meet my husband, now that we are married i would like to change the name on the deeds to myself and my husbands name, but my fathers soliciter has said it with cost over three hundred thousand in inheritance tax to change it while my father is still alive, although my father has left the house to me in his will i am starting to feel anxious as my parents are now going through a divorce, im worried my family will lose their home, i dont no where to start for advice is there any way around the tax issue?
 
This must be a massive house if the tax ( at 25%) would be €300,000.

If you have proof that you paid for the building costs, this would be "consideration" to be deducted from the value of the property you would be receiving. Also you have a 2010 threshold of €414,799, (unless you have already received gifts in this category i.e from your parents) below which the gift is tax-free. Plus a small €3000 annual gift exemption.
Only the value less exemptions and consideration would be taxable.
If the gift is being given to you and your husband, his benefit may exceed his threshold, as your father is a "stranger".
One would have to look at actual values and previous benefits taken to say what the tax, if any, would be. It may be preferable for only you to be the recipient of the gift; it may be better for you to share it.

However, if your parent is not living in the house, you may even qualify to receive the house plus one acre of land exempt from CAT.
If you have lived in the house for 3 years without your parents present, and own no other residence, Section 86 should apply, and no CAT be payable. However, the house may have to go in your name only, an if so, stay in your ownership for 6 years, or there would be a clawback of relief.
 
bub83 said:
I am living in a house that is in my fathers name for the last 6 years, i am married with two children, before i meet my husband i paid for the house to be built and decided to keep it in my fathers name when i meet my husband
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If the OP is Irish based then am I reading this correctly, you already actually paid for this property and have been living there but it is ( for whatever reason) in your fathers name? In this instance I am wondering where the inheritance is coming from. Is it not already your property? Or did you gift it to your father already for it to be in his name ( which brings CAT implications itself) or what brought about this scenario.
 
thanks for the replies yes i ahve paid for most of the buliding but at the time i had just meet my husband and was advised to keep it in my fathers name i was 19 when i built this house and trusted the advice of my father i suppose he was afraid my now husband would try take a share of it if we broke up but now that my parents are divorcing im afriad my house will get dragged into it,from reading your posts i have obviously been given incorrect information from my family
 
sorry also my father has not gifted the house to me because he says he would be him that would have to pay tax
 
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