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I owe the revenue for a property I haven't sold

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  • 08-05-2007 9:01pm
    #1
    learnerplates
    Registered Users Posts: 783 ✭✭✭


    I've been told by a solicitor that I owe the revenue for a house which I have not sold!
    Is there tax charge if I take my name of house deeds?

    I no longer live in a house which I bought a couple of years with an ex-partner.
    My ex-partner still lives in the house by choice. I have no interest forcing them to sell and getting my equity on the house, it was only 12months after purchase when I left.
    My ex-partner has told me that a solicitor is sending me on the deeds to sign and this will result in the revenue seeking a tax payment.
    The reasoning I've been given is that it appears that I've given my ex-partner one half of the house and so someone owes the other tax on one half of the price of the house.

    Any one have experience with this?


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    #2
    XDA
    Registered Users Posts: 946 ✭✭✭XDA


    I don't have experience with this, but if you are signing over half of the property to her then she is the one making the gain and hence likely to be liable for some kind of tax.

    However, normally the sale of a "family home" doesn't attract a CGT charge, so its hard to see how there would be any tax implications here.

    I would suggest you wait and see what comes in the post from her solicitor and get your own solicitor to check everything before you sign anything.

    XDA


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    #3
    learnerplates
    Registered Users Posts: 783 ✭✭✭learnerplates


    Yes that's my plan. In the interim I've queried the revenue, the Citizens Information website now has a questions function:D

    Can't see how one is supposed to pay tax on something that you haven't gained from!!!:confused:


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    #4
    Nordie
    Closed Accounts Posts: 437 ✭✭Nordie


    I agree with Xda, you need your Solicitor for this.


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    #5
    is_that_so
    Registered Users Posts: 32,136 ✭✭✭✭is_that_so


    My guess on it would this.

    If you are not married then I imagine the reasoning is that you would only qualify for the CGT gifts limit.
    On the basis of you giving up your half, you may be deemed to have sold it and therefore made a gain on the original value of the house.
    So on that basis your partner would have been deemed to have bought it from you , so she would have no CGT liability.

    At least that's the only sense I can make from it. Be interested to hear how it works out.

    As posted , your own solicitor should be the first port of call.


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    #6
    learnerplates
    Registered Users Posts: 783 ✭✭✭learnerplates


    Maybe something like that alright, maybe I should sell for a euro, it's be the cheapest half house in Eire:p


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    #7
    Migser
    Closed Accounts Posts: 9 ✭Migser


    Essentially your selling her half the house, hence you will be laibile to CGT on any gain between the sales price and the purchases price. If this house is your principal private residence then the gain is exempt. However if you are getting no proceeds and she is taking over the mortgage than you have no gain so hence no tax due.

    If she gets half of a house at undervalue then she may be laible to gift tax on the undervalue portion.


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    #8
    learnerplates
    Registered Users Posts: 783 ✭✭✭learnerplates


    that sounds promising, the house price is now probably about +80K on the purchase price but I have made no profit.
    We'll have to see how it pans out, I'll let you guys know.
    Interestingly there is a section in the Citizeninformation site on Divorce and seperation couples.


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    #9
    Migser
    Closed Accounts Posts: 9 ✭Migser


    learnerplates wrote:
    that sounds promising, the house price is now probably about +80K on the purchase price but I have made no profit.


    If you have no profit you have no liability.


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    #10
    learnerplates
    Registered Users Posts: 783 ✭✭✭learnerplates


    Just thought I'd keep ye up to date. The latest is that the Revenue want my partner to pay gift tax on the current value AND I will have to pay capital gains.......even though noone is profitting from any of this only the Revenue, sheer greed I'm afraid.

    I'm still looking into this.


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