I cant't help wondering if this is correct as the average cost of a nursing home is approx €800 week. A lifetime could be ten or twenty years.
If your father gives you the house now, you will pay 1% stamp duty, no CGT and no CAT. You will pay the various home taxes as owners of the house.
If you sell the house for €300k at some time in the future, you will be liable for CGT on the increase in value.
Most people I imagine try and have the valuation of the house being transferred to them reduced in value in order to save on stamp duty costs. Your house valued by an auctioneer, €600k, would result in €6k in stamp duty being paid.
If however your valuer valued the house at €750k and you paid the 1% stamp duty on it you would pay €7.5k.
We recently had a house valued from 3 auctioneers (well known names) and it ranged in price from €495k to €575k to €650k.
I am not sure about the Tax evasion bit. If the revenue are happy to accept the higher valuation and consequently the stamp duty payment, I am not sure if they could start whining down the road.
Is there anything stopping you from doing this? When you then go to sell the house in a few years time when it has increased in value to €750k it seems that there would be no CGT to be paid because technically it has not increased in value.
Alternatively you could claim that the actual value on date of acquisition was €750k but then you would have to deal with the deliberate underpayment of stamp duty which could cost a lot more!
No. I am suggesting that you pay the stamp duty applicable on €750k at the time of acquisition. Then wait a few years for the house to increase in value to €750k. Then sell it. I am sure when the time comes to sell you could end up with a range of valuations just as you did when you had it transferred a few years previously.
Valuation is irrelevant on an open market sale (i.e. at arms length), as the sale price achieved is de facto the market value...
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