T/F of property to 5 siblings

P

PhilM

Registered User
Messages
14
Hi

My father wants to transfer his property (value circa €300k) to his 5 siblings. All 5 siblings have homes of their own. The reason for this is the 5 siblings (myself incl.) need to borrow €20k (which we were going to do on the strength of the title deeds of his house) to repay a family debt.

What is the best way of doing this with paying the least amount to the tax man?

I read the post 'Selling a house to my parents' I saw that there is an exemption of €43,400 when a parent gifts to a child. Would that mean we would be liable to CAT on €83,000 (€300k mkt value - €43,400 x5) which would work out at roughly €20k, which is more than the cost of the loan we are looking for.

Is there a better alternative?

Thanks
 
Your terminology is confusing. I think you mean your father wants to gift his home to his children - is this correct? ("Siblings" means brothers or sisters who have at least one parent in common)
 
There are 2 (possibly 3?) aspects to this:

  • Possible CGT arising on disposal of house by father
  • Possible CAT arising on gifts received by children
  • (?) Stamp duty- not sure about this

CGT: If the house is your father's 'principal private residence' and he has lived in it since he first acquired it, no CGT should arise.

CAT: Each child has a €434,000 exemption for benefits received from parents. Therefore, if you and your siblings have not received prior benefits from your parents, no CAT should arise based on the value you mentioned in your post.

I don't know if there are any stamp duty issues.

I'd advise that you seek professional advice before anything is done.
 
Thanks deadlyduck

CGT: The house is my fathers 'principal private residence' and he has lived in it since he first acquired it.

CAT: OK, i was looking at it the wrong way i.e. from son to parent (small bit of research on my side would have revealed this!)

That leaves me with stamp duty so. Does anyone know what the best case scenario is here? I read on another post that stamp duty can be halved (i.e. 50% less) if transfered from Parent to children. Is this the case?

Will certainly get professional advice before i proceed.
 
PhilM said:
Thanks deadlyduck

CGT: The house is my fathers 'principal private residence' and he has lived in it since he first acquired it.

CAT: OK, i was looking at it the wrong way i.e. from son to parent (small bit of research on my side would have revealed this!)

That leaves me with stamp duty so. Does anyone know what the best case scenario is here? I read on another post that stamp duty can be halved (i.e. 50% less) if transfered from Parent to children. Is this the case?

Will certainly get professional advice before i proceed.
Click to expand...

The stamp duty relief is called "consanguinity relief"
 
You must log in or register to reply here.
Back
Top