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CAT issues around uncle selling property to nephew

  • 24-07-2015 4:40pm
    #1
    ceekay74
    Registered Users, Registered Users 2 Posts: 634 ✭✭✭


    In a situation where an uncle sells a property (valued at €250,000) to his nephew significantly below the market value (say €100,000), does CAT & gift tax kick in on the other 150,000?


Comments

  • #2
    seamus
    Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    In short, yes. That €150k is considered to have been "gifted" to the nephew.

    There may also be implications if they only pay €1,000 stamp duty.

    Such people would be strongly advised to talk to a professional advisor about the best way forward.

    For example, if the nephew were instead to live in the property as the sole occupier, after 3 years the uncle can gift him the property, CAT-free.


  • #3
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    But such an uncle would also want to check whether he has a capital gains tax liability based on the full market value of €250,000 and not the reduced figure he might sell at.


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