Hello Irishmiss,
You have outlined a number of questions in your query and I will deal with each of them in turn.
1.There are 3 categories of tax that need to be considered:
Capital Gains Tax
Capital Gains Tax applies to the disposal (including by way of gift) of an asset by the owner. Assuming your parents in-law have lived in the property as their private residence throughout the period they have owned it then they will not be liable to any Capital Gains Tax as they will be entitled to claim Principal Private Residence Relief in accordance with the provisions of Section 604 of the Taxes Consolidation Act 1997.
Capital Acquisitions Tax (CAT)
Where an individual acquires an asset by way of gift or inheritance then Capital Acquisitions Tax needs to be considered. The relationship between the parties (the gifter or, in the case of an inheritance, the testator) will determine the amount that can be received tax free. As is outlined above, your husband will qualify for the Group A threshold referred to above, and assuming he has not received previous taxable benefits (a benefit is taxable where it's value exceeds the small gift exemption) from his parents, he should not have to pay CAT on the gift of the property to him.
If he grants a right of residence to his parents then this is taken into account in valuing what he receives, i.e. it assists in reducing the value he is receiving.
There is a mention of an exemption for dwellings above. For more information on the conditions to be satisfied to qualify just pop me a pm.
Stamp Duty
Stamp Duty is payable on the acquisition (including by way of gift) of property where a conveyance of the property is taken. Conveyance is the term given to the document transferring legal title from one person to the other.
If your husband receives the property as a gift he will have to pay Stamp Duty. He will be able to claim a special tax relief called consanguinity relief so that the duty payable is reduced to half the amount he would pay if he was a stranger to the person gifting. For information of Stamp Duty rates you should click
http://www.revenue.ie/revguide/stampduty.htm#rates.
Stamp Duty & Inheritances
Generally speaking a transfer (assent) of property to the persons who are entitled under the will or on intestacy to the property
does not attract stamp duty.
Capital Gains Tax and Death
Capital Gains Tax does not apply to a disposal on a death. Therefore the issues outlined above would not be of any concern. For this to apply the parents must be compotent to dispose of the assets at the date of death, i.e. to effectively have been of sound mind and be over 18 on the date of death.
If you have any questions just visit my profile and send me an email.
Regards,
Mark