Gift tax? Stamp duty?

warren631

A man wants to give each of his four brothers a share of his property so there would be five joint owners each owning a 20% share. The property is residential worth 200,000 so each brother would recieve a gift worth 40,000. What would be the tax liabilities for each brother? Gift tax? Stamp duty? Thanks for any replies. Warren.:rolleyes:

warren631

There would be no stamp duty liability in relation to this as none of the transfers exceed the €125,000.00 exemption. You should ensure that your solicitor completes each transfer on a separate deed in order to ensure this. In terms of Capital acquisition Tax which is the tax which applies to gifts and inheritance. Fortunately your brothers as lineal ancestors qualify in the group B threshold exemption for CAT. This means they are entitled to receive a gift/inheritance of €41,481 before they become liable for CAT. So assuming they haven't taken any previous gifts with in this threshold category they will not be liable for CAT Beyond that the only other fees to be incurred will be Land Registry and legal fees

enda1

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What just happened??

warren631

No one knew the answer so I found out elsewhere and answered my own question for the benefit of others with similar questions. Its a hard concept - do you understand now?

Mr. Incognito

Oh Dear where to start.

Firstly that 125,000 exemption applies in ENGLAND.

Secondly it's on the entire transfer in Ireland not on the divided gifts.

Thirdly CGT

Lastly this is a property thread and is duly locked.

Read the charter.