Stamp Duty on a property gift

T

Thorpe

Guest
My mother is to give me a gift of a brand new apartment. The market value is c250,000Euro. Will I be liable for stamp duty, no cash will chamge hands ..it is a straight gift.. What other liabilities are likely to arise.
 
Gifts of assets between family members are subject to stamp duty at half the normal rate applicable. Check to see what you would be subject to if you bought this and then halve it. A gift of this nature should be below the threshold assuming that you have not been given other gifts and that this one cumulatively pushes you over the limit. Your mother may be liable for [broken link removed] on the disposal.
 
Follow on questions :

1. When calculating the stamp duty is the valuation net of or inclusive of VAT

2. I am thinking of buying a second new apartment in the same block. The value will be 255,000Euro VAT incl. My logic is that the rental income from both properties will pay the mortgage on the purchased proeprty. As all my own capital will be used up in legal fees, stamp duties, outfitting, I am considering borrowing the full amount. Am I better off taking out one mortgage or two mortggaes of say 175,000Euro and 180,000Euro. Any advice. Both properties will be rented from the outset.

3. My mother deveoped the property and is passing the apartment to me in raw form..there is no monetary gain for her..is there any grounds for CGT in this case
 
I can't comment on anything other than this one:

Unregistered said:
3. My mother deveoped the property and is passing the apartment to me in raw form..there is no monetary gain for her..is there any grounds for CGT in this case
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As far as I know, in general the disposal of an asset, even if there is no monetary gain, triggers a potential CGT liability for the donor. In fact the gift of an asset would also trigger a potential gift tax liability for the recipient but in this case family exemptions apply. I'm not sure if the fact that this is a gift from a parent to child has any relevance to the CGT issue but I think not. The only such exemption that I'm aware of is when a parent gifts a site to a child for the purposes of building their own PPR.

Disclaimer: I am not a tax expert and am open to correction on all of this. Please get independent, professional advice if in doubt.
 
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