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Selling a property after transfer of ownership

  • 04-02-2017 1:09pm
    #1
    Crunchie77
    Registered Users, Registered Users 2 Posts: 28 ✭


    Hi

    My parents transferred ownership of a property to myself and my brother last year. They got a valuation done at the time and it was less than the value of the property now. The value was also much less than the gift tax/inheritance tax thresholds for gifts from parents to children.

    We inherited tenants who were renting around €500 below market value but we decided to let them stay an extra year as we weren't ready to fix up the place at that time for new tenants.

    With the new rules preventing us from ever getting the rent up to market value, as well as hefty management fees, we are considering selling.

    My question is would we be liable for any tax on the property if we do sell, in particular because the value of the property has increased since it was transferred to us. Is there a minimum time we need to keep the property to avoid this?

    Appreciate all replies


Comments

  • #2
    adrianw
    Registered Users, Registered Users 2 Posts: 236 ✭✭adrianw


    Crunchie77 wrote: »
    Hi

    My parents transferred ownership of a property to myself and my brother last year. They got a valuation done at the time and it was less than the value of the property now. The value was also much less than the gift tax/inheritance tax thresholds for gifts from parents to children.

    We inherited tenants who were renting around €500 below market value but we decided to let them stay an extra year as we weren't ready to fix up the place at that time for new tenants.

    With the new rules preventing us from ever getting the rent up to market value, as well as hefty management fees, we are considering selling.

    My question is would we be liable for any tax on the property if we do sell, in particular because the value of the property has increased since it was transferred to us. Is there a minimum time we need to keep the property to avoid this?

    Appreciate all replies

    Yes, you will pay capital gains tax on the difference between to value of the property at which it was transferred to you and the price it sells for (less any sales costs).
    Capital Gains Tax will be charged at 33% on the gain (ignoring any annual gains relief).

    There is no relief no matter how long you keep the property.


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