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CAT

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  • 03-05-2023 12:10pm
    #1
    spr100
    Registered Users Posts: 12 ✭


    Hi I was looking for some advice, I bought a property back in 2007 my brother was on the mortgage to help get me over the line, he has never had any interest in the property and now wants his name off. Which is fine but it seems that I may now need to pay CAT. He has never lived or paid towards it and I lived in the apartment till last year and am now planning to rent it out. Is there anything I can do to address this to avoid the CAT. My other option is just to sell the apartment



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    #2
    relax carry on
    Registered Users Posts: 4,072 ✭✭✭relax carry on


    Why are you paying Capital Acquisitions Tax on a property you already own?



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    #3
    Allinall
    Registered Users Posts: 6,542 ✭✭✭Allinall


    If the OP's brother was named on the mortgage, then they would have had an "interest" in the property. I would say the mortgage conpany would have insisted on them being named on the deeds. How else would they hope to recover their money in the case of a default?

    I gather that what the OP meant was they had no personal interest in it, which is different.

    If they want their name removed from the mortgage, the mortgage company will need to effectively increase the OP's mortgage, and will insist that they are 100% owners of the property.

    This will result in an effective gift from the brother to the OP.

    On the flip side, if the OP has been paying the full mortgage, then they have effectively been gifting the brother their proportion of the mortgage repayments each month.

    OP should consult a tax expert.



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