Hi Ask About Money,
I’m hoping to get some guidance on whether my mother may have a Capital Gains Tax (CGT) liability in this situation.
Background:
* In 2021, my mother purchased a 2-bedroom cottage on approximately 1.4 acres in County Kildare for €163,000. The purchase was made outright (no mortgage).
* In 2026, she decided to gift approximately 0.8 acres of the land to me (her son).
* We completed the transfer through a solicitor, and I paid the required stamp duty and all associated legal costs.
* Before the transfer, I had the land independently valued by a local estate agent at €18,000.
My mother’s solicitor has since advised that she may have a Capital Gains Tax liability because she disposed of part of the property by way of a gift, and has suggested speaking to an accountant.
My understanding is that, for CGT purposes, a gift is generally treated as taking place at market value, even where no money changes hands. However, I’m unsure whether any gain would actually arise in this case, given that:
* The land formed part of the original property purchased in 2021.
* The gifted portion was valued at only €18,000.
* The original purchase price for the entire property (house and 1.4 acres) was €163,000.
My questions are:
1. Is my mother’s solicitor correct that a gift of land to a son can give rise to Capital Gains Tax?
2. If so, would the gain be calculated by allocating part of the original €163,000 purchase price to the 0.8-acre site and comparing that with the €18,000 market value?
3. Given these figures, is it likely that there would be little or no CGT to pay, or is there something I’m overlooking?
I’d really appreciate any insight from those familiar with Irish tax rules or anyone who has been through a similar situation.
Thanks in advance.
I’m hoping to get some guidance on whether my mother may have a Capital Gains Tax (CGT) liability in this situation.
Background:
* In 2021, my mother purchased a 2-bedroom cottage on approximately 1.4 acres in County Kildare for €163,000. The purchase was made outright (no mortgage).
* In 2026, she decided to gift approximately 0.8 acres of the land to me (her son).
* We completed the transfer through a solicitor, and I paid the required stamp duty and all associated legal costs.
* Before the transfer, I had the land independently valued by a local estate agent at €18,000.
My mother’s solicitor has since advised that she may have a Capital Gains Tax liability because she disposed of part of the property by way of a gift, and has suggested speaking to an accountant.
My understanding is that, for CGT purposes, a gift is generally treated as taking place at market value, even where no money changes hands. However, I’m unsure whether any gain would actually arise in this case, given that:
* The land formed part of the original property purchased in 2021.
* The gifted portion was valued at only €18,000.
* The original purchase price for the entire property (house and 1.4 acres) was €163,000.
My questions are:
1. Is my mother’s solicitor correct that a gift of land to a son can give rise to Capital Gains Tax?
2. If so, would the gain be calculated by allocating part of the original €163,000 purchase price to the 0.8-acre site and comparing that with the €18,000 market value?
3. Given these figures, is it likely that there would be little or no CGT to pay, or is there something I’m overlooking?
I’d really appreciate any insight from those familiar with Irish tax rules or anyone who has been through a similar situation.
Thanks in advance.