Leaving house to grandchild

gillka92

I live with my grandfather for the last 5 years. He is planning to leave me the house and wants to do this in the most tax efficient way. If I was to buy the house of him for less then the market value what would be the tax implications for me? As far as I understand he would be exempt under Principle private residence relief. I don't own any property and have never received a gift or inheritance. thanks

Calahonda52

You may meet these requirements
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-for-dwelling-house/index.aspx
if not

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-thresholds.aspx
32.5k is your limit so anything over that is at 33%
What value is the house?

Unknownability

Most efficient and easiest way would be to your parent and then to you.

relax carry on

Unknownability wrote: »

Most efficient and easiest way would be to your parent and then to you.

Except for the gift splitting provision.

https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/how-do-you-calculate-cat.aspx#:~:text=If%20a%20gift%20is%20passed,splitting%20affects%20the%20threshold%20used.

Calahonda52

Unknownability wrote: »

Most efficient and easiest way would be to your parent and then to you.

Would you trust a parent to honour it...?

Unknownability

relax carry on wrote: »

Except for the gift splitting provision.

https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/how-do-you-calculate-cat.aspx#:~:text=If%20a%20gift%20is%20passed,splitting%20affects%20the%20threshold%20used.

Agreed should've made that clear it wasn't instant, you'd have to wait three years to have it in your name.

Marcusm

Dwelling house relief is what you should look into:

Qualifying conditions for an inheritance on or after 25 December 2016
The Finance Act 2016 introduced changes to the qualifications which apply to inheritances on or after 25 December 2016. You will be exempt from CAT on a house you inherit if:

The house was the only or main home of the person who died (this condition does not apply if you are a dependent relative).
You lived in the house as your main home for the three years before the person’s death.
You do not own, have an interest or a share in any other house, including one you acquired as part of the same inheritance.
The house is your main home for six years after you receive the inheritance. This does not apply if you are over 65.