Transferring PPR and tax implications

R

runner

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If I transfer my interest in our PPR to my wife (its fully paid for and have deeds), and she sells it more or less straight away, are there any tax implications?
 
why are you doing it?

the transfer to your wife is ignored for tax purposes, but on selling the asset she is treated as if she bought it when you did for the price you paid for it. However, presuming it is also her PPR, there is no tax on the sale.
 
Thanks Nige, just a speculative thought.
Do youknow if you have to make any declaration or fill out any forms when you sell your PPR , even though there is no tax due?
 
Once the property has been ones PPR throughout ownership there are no tax implications or forms required.
 
Mrs Vimes said:
Actually, he's not (for the first time) [broken link removed]
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Correct, development value or grounds of in excess of one acre are excluded and CGT may be an issue in such cases. My post was assuming normal PPR disposal with no such complications. I should have included that caveat. To be completely clear, in filing a F11/12 or CG1, one might go so far as to list the disposal then claim the PPR relief, reducing the gain to nil. I'm not aware of too many cases where people do that though on disposal of the PPR where it has no additional CGT complications such as development value .
 
Even where there is no development value he still has to return it on his Form 11/12 or CT1, doesn't he?

"Please note that even where PPR relief means that no CGT is payable you will still be required to provide a tax return in relation to the sale. "

Do Revenue ever go after anyone for not returning sale of PPR? I would have thought they'd use them to keep track of purchasers, stamp, nppr, etc?

You are an accountant and I am not so certainly not trying to tell you your business, just curious really Graham
 
No complications as above thanks, but useful info indeed.
As a matter of interest where there are no complications, do you have to file the above mentioned forms anyway?
 
Mrs Vimes said:
Even where there is no development value he still has to return it on his Form 11/12 or CT1, doesn't he?

"Please note that even where PPR relief means that no CGT is payable you will still be required to provide a tax return in relation to the sale. "

Do Revenue ever go after anyone for not returning sale of PPR? I would have thought they'd use them to keep track of purchasers, stamp, nppr, etc?

You are an accountant and I am not so certainly not trying to tell you your business, just curious really Graham
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There are lots of things people should do but don't in relation to returns.

- People get F12's and don't file them. Revenue do not , by and large, follow this up.
- People should file F46g's (Third party information) returns where they exceed the thresholds, but many don't and Revenue do not follow up.
- VAT Return of Trading Summaries , similarly, are not followed up on when not filed.
I have never yet, encountered anyone being pursued by Revenue for not filing the sale of their PPR on a F12/11 or CG1, where that sale would have had had no tax implications.

Stamps branch in Revenue would have details of sales and with vendors/purchasers PPS numbers being required they are aware of the transaction, however actually using that information to see if there was a tax return/CGT return due, does not seem to be something regularly pursued.

Josephine Feehily (The chair of Revenue) said a few years ago " if only Revenue knew what Revenue knows". They have so much information from so many sources which could be used to tighten up on filing , returns and ultimately liabilities. However the information has, to now, been kept in so many different systems that a common database for all relevant transactions relating to a taxpayer would make huge steps forward in compliance.
 
runner said:
No complications as above thanks, but useful info indeed.
As a matter of interest where there are no complications, do you have to file the above mentioned forms anyway?
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You should but claim PPR relief resulting in a nil gain.
 
Mrs Vimes said:
Really? My Januaries just got a little brighter :)
Thanks for the info.
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I have one here for April 2010 just found in a bag of stuff from a client. Never sent off. I duly completed the necessary and have filed it on ROS today.

There is a fine for non-filing of the RTD of €1,250.00. However, as said, I've never seen Revenue follow up on them. That is not to say that as the exchequer coffers dwindle further that these sort of returns will come further up the list of priorities. So I wouldn't stick them in the back of the press just yet. ;)
 
If you ever take up a job in the Revenue Graham, we will all get compliant in a hurry!
Thanks.
 
Graham_07 said:
I have never yet, encountered anyone being pursued by Revenue for not filing the sale of their PPR on a F12/11 or CG1, where that sale would have had had no tax implications.
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I have dealt with a number of cases in the past 12-18 months where people who previously sold PPR's got snotty-sounding letters from Revenue demanding imminent submission of Form CG1.
 
T McGibney said:
I have dealt with a number of cases in the past 12-18 months where people who previously sold PPR's got snotty-sounding letters from Revenue demanding imminent submission of Form CG1.
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Were any of these cases ones with potential CGT implications or clear PPR ones? Maybe Revenue are finally starting to catch up on using the information they have already at their disposal to seek out non-filers.
 
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