Transfering Property from a parent to spouse?

eire2009

I know if it the spouses main residence for over 3 years the spouse does not have to pay capital gains tax on the transfer.

Somebody has told me that the parent has to pay capital gains on the transfer as if they had received the money to the valuation of the property even though they have received nothing.

I was just woundering if anybody could clarify this as I cant seen to find it on the citizens information or anywhere else.

Fishyfreak

Parent to spouse?

Do you mean parent to son/daughter or spouse to spouse?

eire2009

Fishyfreak wrote: »

Parent to spouse?

Do you mean parent to son/daughter or spouse to spouse?

Yes sorry mixed up my words

Odats

As it would be deemed a connected disposal the market value of the property would be used. AFAIK you will be exempt from CGT as you will qualify for Principle Private Residence relief providing you have occupied the property as your main private residence for the duration of ownership.
However, your child depending on the value of the property i.e. >€414,799 would be liable to Capital Acquisitions Tax at 25% on the excess after deducting 3,000 euro small gift exemption.
The provision that I think you are referring to was abolished in 2007 for gifts but is still in existence for inheritances in relation to CAT i.e. no limit on value of property totally exempt from CAT provided your child meets the conditions the main ones being living/deemed living in the house for a continuous period of I think 3 years plus they must not owned another property.
Hope this helps.

eire2009

Thanks Odats

Synerg

As far as I know the computation of the CGT will deem it that you received proceed equal to the current market value of the property. However you will be exempted from CGT for the duration of your ownership. If you are over 55 you may qualify for Retirement Relief that will exempt you from paying any CGT provided your Child does not dispose the property within 6 years. Otherwise the CGT you escaped will have to be clawed back and paid by your Child.

Odats already mentioned the issue relating to CAT consequences.

Odats

Synerg wrote: »

If you are over 55 you may qualify for Retirement Relief that will exempt you from paying any CGT provided your Child does not dispose the property within 6 years. Otherwise the CGT you escaped will have to be clawed back and paid by your Child.

Sorry there but you have mixed up this here. You cannot claim CGT retirement relief on a main residence. The above is only in relation to business property.

Synerg

Odats wrote: »

Sorry there but you have mixed up this here. You cannot claim CGT retirement relief on a main residence. The above is only in relation to business property.

@Odats,
Yes you are correct. Retirement Relief does relate only to business property.Thanks for the correction.