gifted site

HoofRocks

Hi there
Our site is on my fathers land and we (unmarried) are at the stage to have it signed over. Our mortgage requires both our names on the site so two questions

1. Is it better to have the site gifted to us and my partner pays cgt - if so need to find out how this is calculated

Or

2. Should we buy the site from my father or would this make any difference in what we have to pay?

Thanks

The HorsesMouth

Why does the land have to be in both names? In the exact same situation at the moment and we had no problems. Land is in my name but we are both on the mortgage.

bee06

We were told by our mortgage broker that AIB are the only bank that offer sole title and joint mortgage so I'm guessing the OP's mortgage would be with another bank.

OP, either option will result in your father paying capital gains tax. Option 1 would mean your partner would have to pay capital acquisitions tax. The easiest thing would be if you could get your mortgage from AIB otherwise I'd suggest consulting an accountant to see which option would result in the lowest tax.

The HorsesMouth

bee06 wrote: »

We were told by our mortgage broker that AIB are the only bank that offer sole title and joint mortgage so I'm guessing the OP's mortgage would be with another bank.

OP, either option will result in your father paying capital gains tax. Option 1 would mean your partner would have to pay capital acquisitions tax. The easiest thing would be if you could get your mortgage from AIB otherwise I'd suggest consulting an accountant to see which option would result in the lowest tax.

Our mortgage is with PTSB and we were offered another one with Ulster so thats definitely not the case. OP I would really advise you to go back to your mortgage provider and ask again for clarification. You shouldn't have to go for any option you have mentioned.

Naux

A site can be gifted from father to child free from CGT( as long as the valuation of the site is < the father/child CGT gift threshold) as far as I am aware. The gift threshholds have moved down in recent years so check with your solicitor/accountant what they currently are.

If your father gifts the site to ye jointly then your partner would have a liability for CGT on 50% of the valuation of the site as far as I am aware.

Not sure how the banks stand on the issue of joint mortgages and single title but it might be messy for ye if anything went wrong in the relationship down the line. Check everything with your solicitor I would say.

HoofRocks

Thanks for the info. I will check if the site can be in my name and we both contribute to the mortgage.

In this case it would be just gifted from father to child

Glebee

I was in the same situation. Father gifted me a site. Partner who was not my wife at the time had to sign something at solicitors to say she was aware that site was only in my name and morgage was in joint names. When we got married site put in both names. Simple (I think):D
No issue with bank at the time which was BOI.