Marriage question regarding capital gains tax

Paul_Mc1988

Hi there,

Me and my girlfriend own a house together but are not married and we don't necessarily see ourselves getting married. If one of us were to die would the other be on the hook for capital gains tax on the half they inherited.


Also are there any other financial gains to getting married if both are earning 50k+ ?

Geuze

CGT is a tax on capital gains from selling an asset.

You may be referring to CAT?

Paul_Mc1988

Geuze wrote: »

CGT is a tax on capital gains from selling an asset.

You may be referring to CAT?

Yeah it must be. So would she have to pay CAT on my half if she in inherited it?

Geuze

Paul_Mc1988 wrote: »

Yeah it must be. So would she have to pay CAT on my half if she in inherited it?

A good question.

You may recall the two men who got married under the new SSM law, to avoid CAT.

They were not both homosexuals, I think one was, but the other wasn't.

Calahonda52

Geuze wrote: »

A good question.

You may recall the two men who got married under the new SSM law, to avoid CAT.

They were not both homosexuals, I think one was, but the other wasn't.

Speculating on the the sexual orientation above is wholly irrelevant as well as a whole list of other things.
OP
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-on-transfers-between-spouses-or-civil-partners/index.aspx
if you get a civil partner ship put in place.
With nothing in place you are bot strangers

bobbyy gee

living.in sin
https://www.irishtimes.com/business/tax-crux-warning-for-unmarried-couples-1.121620?mode=amp

1991hun

As you are not married, you are not technically related. Therefore the Group C threshold of 16,250 applies on any potential gift/ inheritances between you both. As such, any value of the gift/ inheritance exceeding the threshold will be liable to CAT at 33%. The draft calculation would be as follows:

MV on date of death (50% of MV of property) xx
Less Group C threshold (16,250)
Taxable value xx
@ 33% xx

If you gift 50% share to the other during lifetime, CGT needs also to be considered as if it was a 'deemed' sale. However, in this instance, the CAT due will be offset against CGT paid via a credit.

To answer your other point, there would be no tax advantages of being married with respect to the taxation of your wages- you both earn over the standard rate cut off point of 35,300. Therefore, neither of you would have unused credits/ bands to transfer over to the other person. Both of you earn a single person tax credit of 1,650 which is the same as earning 3,300 married tax credit between you.

Hope this helps?

Marcusm

Dwelling house exemption would be available in many cases but beware of the time requirements and for the survivor not to have an interest (However limited) in another property.