Q: CGT/CAT on house & land trasnfer from father to child?

S

steph

Guest
I’ve been reading up on CAT/CGT but still looking for some help.

My father is looking at transferring the original family home (his home) and 4 acres of adjoining land to me.

I was originally going to let this to be willed to me and leave it at that but I’ve been advised (by his solicitor) to get it sorted asap as a family rift may mean my dads will being objected to and in that case all of his lands could be sold and divided up between the family.The objection may come from another member who depsite being given most of the land still feels he should get everything. Some have already sites transferred but this may be different as this involves his PPR

The value of the property incl the house would be approx €350,000 - €400,000 max as the house would need a good bit of work and the rest of the land cant be built on.

I currently have my own house with my husband and I have never received any gifts/ inheritance previously.

My queries are:

What tax would I be liable to - seen as I haven’t lived in the house for a number of years? My dad has lived there by himself for the last 6 years (I stay some nights each week with him but my PPR is a different house). I would not intend on living there in the foreseeable future
What tax, if any, would he be liable to?
If I then owned the house, he would have no PPR as such would I then be considered a landlord and again what would the tax implications be?
Also would either of us be subject to Stamp Duty???

I don’t know if I need to go to a tax advisor or a solicitor or do I need both for different parts of the advice. I’d really like to have an idea of the tax implications first !!!!

Many thanks

S
 
Hi

I am a tax accountant. There are a number of taxes here that will come into play:

CAT - there may be gift tax at the rate of 25% over 434k if you have previously received gifts from your father
Stamp Duty - you will have SD to pay at the rate of approximately 4% on the land and house
CGT - your father will not have to pay CGT on the disposal of the house PLUS 1 acre but may have CGT on the remaining 3 acres
As you will own the house you may be able to claim that you own the house for a dependent relative and avoid and further charges. Remember that the new levy fo €200 may apply - need to check that one.

Hope this helps

Adrian
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