Transfer of joint ownership with parent to single ownership

S

sandymount

Registered User
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I purchased a house with my father in 1997. It cost 160k euro is now valued at about 550k(recent valuation).

I have lived in the house since purchasing it and have paid all the mortgage. I couldn't get a mortgage for the full amount at the time of purchase so my father agreed to co-sign the mortgage and is co-owner of the house.

My father has agreed to sign the house over to me now if I pay an CGT liability that is outstanding.

Can anyone let me know what the liability will be and what stamp duty would be payable on the transaction.

Thanks

S
 
sandymount said:
I purchased a house with my father in 1997. It cost 160k euro is now valued at about 550k(recent valuation).

Can anyone let me know what the liability will be and what stamp duty would be payable on the transaction.

Thanks

S
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There should not be any CGT as he can transfer the property to you as a gift.
The stamp duty will be on his half of the €550 but will be at 50% of the normal rate as it is within the family.
 
Why would his father not have a CGT liability ?

He bought an asset for 80k in 1997 and is now disposing of it for 275k, ie a gain of 275-80*1.232=176k or 275-80*1.251=176k depending when in 1997. Unless he can claim Principal Private Residence relief on this property, the gain is chargeable to tax at 20% = 55k approx
 
So the stamp duty rate would be 5% as the transaction is between €254,001 - €317,500 and not 7.5% because the house is valued at €381,001 - €635,000 and there would be a 50% reduction due to the transaction is between family members.

I thinks €176k * .20 is actually a €35k

Thanks

S
 
If the deeds and mortgage are in your name there will be no CGT liable as the propert is your priamry residance. There will only be stamp duty if money is changing hands - if it is a simple transfer no stamp duty required.

If your father is on the deeds of the properety it will be concidered to be an investment property - He will be required to pay stamp on the original purchase price.
 
My fathers name is on both the deeds and mortgage. The house was second hand so I did pay stamp duty already at the time of purchase.
 
Don't forget to deduct half the buying costs including stamp duty paid and any improvements that may have been made to the house and the annual exemption of 1,270 if not already used. .
 
Whats the total amount of the mortgage outstanding? You will be buying one half of the house less one half of the mortgage - assuming you are taking over the mortgage or remortgaging for the full amount. Were you a first time purchaser? If so, depending on the sums you may not be liabale for any stamp duty.

For CGT - is it your fathers ppr? If yes, then no CGT. If no, then roughly 20% on the difference between half the value of the capital gain in the property less expenses.

mf

eDepending on the
 
Whats the total amount of the mortgage outstanding? You will be buying one half of the house less one half of the mortgage - assuming you are taking over the mortgage or remortgaging for the full amount. Were you a first time purchaser? If so, depending on the sums you may not be liabale for any stamp duty.

For CGT - is it your fathers ppr? If yes, then no CGT. If no, then roughly 20% on the difference between half the value of the capital gain in the property less expenses.

mf
 
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