The problem with this is that my name will need to go on the deeds as well and surely that means Revenue will deem that I have received a gift from my father in law and I'll be liable for CAT?It's a gift rather than a bequest so the ideal scenario would appear to be as follows! Your wife's father to transfer the full title to you and your wife for 150K. You will then get a mortgage on the property and pay this amount to your wife's father. He can then gift 150K to your wife's sister.
I've spoken to my solicitor but he hasn't really given me any advice. He's just said I should consult my account (which I'm in the process of doing).Option 2 would be an option, providing that title did not have to be transferred to both sisters. Best to seek the advice of a good solicitor before any final decision!
Have you considered your wife's father's capital gains tax liability on the transaction.
If this property is not the father's ppr then most likely CGT will apply.
The problem with this is that my name will need to go on the deeds as well and surely that means Revenue will deem that I have received a gift from my father in law and I'll be liable for CAT?
Wow mandelbrot, you sir/madam have just made my day! Thank you.There's a concession for that sort of scenario, where the bank requires a spouse's name be included on the deeds for morgage approval:
[broken link removed]
19.16 Connected Gifts
Under section 8 CATCA 2003, gifts are deemed to come from the original disponer when they are gifted on within 3 years before or after the original gift. However, in cases where, for example, a gift (the first gift) is taken by a married child of the disponer and consists of a house or a site for a house and that child in raising a mortgage on that property finds that the lending institution as a requirement for the mortgage demands that the property is placed in the joint names of the spouses (the second gift), then provided adequate evidence is given that the transfer into the joint names is at the insistence of the lender and that the first gift was not made to enable or facilitate the making of the second gift Section 8(1) will not apply. Section 8(2) covers this situation and will also apply in all other cases where it can be shown to the satisfaction of the Revenue that such gifts are not so connected.
You might want to consider getting a different solicitor to deal with this, if your current on isn't aware of this concession, as it needs to be done correctly (transfer from his name to hers, and subsequently at the behest of the bank your name is added to the deeds.)
So would this be the order of events:as it needs to be done correctly (transfer from his name to hers, and subsequently at the behest of the bank your name is added to the deeds.)
So would this be the order of events:
I'm obviously going to go through all this with solicitor and accountant but would appreciate your opinion too, thanks.
- Father in-law transfers 50% of the house to my wife. Deeds are now in father in-law's name and my wife's name.
- Bank provides us with letter stating that they are insisting that my name go on deeds as well as condition of mortgage.
- We get joint mortgage and buy remaining 50% off father in-law. Deeds are now in my name and my wife's.
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