Capital Gains Tax

Skutch

Hi,

I am gifting a site valued at €35,000 to my niece & her partner what are both of our obligitations, I inherited the the farm from my mother in 2001?

thanks

Geuze

If the value has increased since you inherited, you may have made a capital gain.

You may be liable to CGT on the gain.

Your niece and partner are each receiving a gift of 17,500 from you.

They should read this:

https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx

Skutch

Hi Gueze,

I have figured out that they are liable for anything over 32,500, so 33% of 2500 I reckon

I inherited as agricultural land should I use an agri land value for CGT or does it have to be site valuation? what you think?

thanks

ari101

I can't answer your other q but note the following exemption should apply in addition:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/small-gift-exemption/index.aspx

Geuze

If the site is worth 35k, and you are gifting it 50/50 to two people, then the gift is 17.5k each.

Category B gifts limit is 32,500, lifetime allowance.

The niece can receive 32,500 from category B people during her lifetime, free of CAT.

If she has never received a gift from category B before, then she doesn't owe any CAT on this 17.5 gift.

(Note that the CAT is her issue, nothing really got to do with you)

The niece's partner is not related to you.

He and you are category C.

The limit is 16,250, so CAT will be due on the 17.5k gift he receives.

Geuze

For your CGT calculation, the base cost seems to be the agricultural value in 2001.

The current value might depend on whether the site has OPP, FPP, etc.??

downtheroad

https://www.boards.ie/discussion/comment/119842092#Comment_119842092

Small gift exemption would apply Geuze, so €3,000 can be taken off your figures