Property Transfer

S

smg316

Guest
Hi all,

I have a question and was hoping someone would be able to assist please....

My aunt wishes to transfer a property to me as a gift...its a residential property in which i'm currently residing in.

Is the best way to transfer as a gift, or for a nominal £1 value? What are the tax implications? This would be my primary residence, I'd be living here and not renting or anythign along those lines.

The property is all cash and has no sort of mortgage/loan against it. Does the value of the property matter, its above £300,000- wasnt sure if there was some sort of threshold.

Once the property has been transferred- I have the thought (which my aunt is fully aware of!) to take a partial mortgage against it and use that to buy a seperate buy to rent property. Is this relevant at this stage?

Any advice is greatly appreciated.
 
As you appear to be UK-based and this is an Irish site, it's unlikely you will get the advice you need here.
 
Ah right I didnt realise that lol.......dont suppose anyone still knows the answer :S
 
Laws / taxes etc differ across jurisdictions; you'd be better off posting on a UK equivalent.
 
Is the site in Ireland? If so, it will be chargeable to Irish CGT only no matter what your nationality is i.e. No tax payable in UK.

Basically, its 25%*market value of property less €3,000.

Transferring it at €1 is a gift. Revenue apply Market value no matter what value you put on it. Obviously its a good time to do this now as values are down at the moment.

On your last point, interest on the loan raised in buying another property would be disallowed.
 
So if the property is worth 300,000 CGT is 25% ...so 75,000-3000=72,000 cgt.
Is that correct?
 
wow, I never knew capital gains tax was so high. If I was to get a site from my parents to build a house on the family farm would i have to pat CGT
 
You must log in or register to reply here.
Back
Top