Paying House Deposit For Girlfriend/Gift Tax

  • Thread starter roadrunner_8
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roadrunner_8

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Hi guys, I'm thinking of taking a loan out to pay for a house deposit for my girlfriend as she's not quite getting the approval she'd hoped for. We're looking at buying a place each so want to retain seperate first-time buyers grants. Does anyone know how this would work out and if gift tax would need to be paid on it???... Many Thanks!!!
 
If you contribute the deposit, you will be treated as party to the purchase of the house so you would both lose your first time buyer status after the purchase of this house.

From revenue:


What is the position where the purchase monies are not provided entirely by the first time buyer?

To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer.


www.moneybackmortgages.ie
 
I don't see why you can't gift the deposit to your GF, whereupon it becomes legally her money.

Then, legally speaking again, she is providing the deposit to the bank.
 
OP can make a gift to the GF, but it has to be just that - a gift. No repayment, no prospect of repayment and no interest in the house. GF may be subject to CAT on the gift too.
 
Hi All,
Thanks for the speedy replies, I'd be looking at giving her the money with no conditions/interest in the property so as a gift may be the best option though I think anything over 21000 will be subject to Capital Gains Tax. I'll have to look into it a bit more!!!
 

Capital Acquisitions Tax, not CGT. Take advice before you give away your money!
 
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