Gifting and Capital Gains Tax

axel rose

I have inherited a farm. The land is rented and a relative has been living in this house for over 20 years and the house is theirs in all but name. I want to sort this out and sign it over to them. Is it true that if its gifted I would have to pay CGT of 20% and the reciever also pays gift tax of 20%? Can the government take that much of a cut?

Is there some way that they can assume possession as they have had it so long in all but name?

dbran

Hi

I believe there is a set off between the two taxes if they both arise on the
same transaction.

See http://www.revenue.ie/en/tax/cgt/cgt-faqs.html#section4

But this is a complex area and you need to seek professional advise.

Regards

dbran

dbran

Hi

Further to the above it is possibly exempt from CAT. See extract of exemptions from revenue CAT guide

"Exemptions and Relief’s for Gift and Inheritance Tax

A gift or inheritance of a dwelling house where the beneficiary has been living in the house for 3 years prior to the gift or inheritance, and remains in the house for a further 6 years is exempt from CAT. The beneficiary cannot have any interest in any other residential premises. With effect from 20 February 2007, the exemption will not apply in the case of a gift, if the disponer lived in the house during the 3-year period prior to the gift, subject to certain exceptions."

There would still be CGT of course.

Still seek professional advise though:)

Kind Regards


dbran

censuspro

Also, It may also qulaify for Prinicple Private Residence relief and therefore no CGT.

You should get professional advice.