CGT on disposing a property gifted to me

featranger123

Hello

If I was to gift a property to someone in my family that I was originally gifted from a parent in the first place a few years ago, am I liable for CGT bill if I've made no monetary gain from the asset, never lived in it (derelict and uninhabitable), likely to have depreciated further in value than the value at the time I was gifted it as condition has significantly worsened.

I understand if I sold it for money I would be liable alright. But I'm struggling to find information anywhere on the Revenue site regarding disposal of an asset for no monetary again to another member of my family who has the funds to make something of it and cover the capital aquisitions liability they would have.

Just a straight transfer of the deeds.

Any advice?

Already tried a MyEnquiry a few weeks ago and got no response

Thanks.

relax carry on

Money doesn't need to change hands for a CGT event to occur. CGT can occur on the sale, gift or exchange of an asset.

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/what-do-you-pay-cgt-on.aspx

It's up to you to calculate if you have made a gain or a loss for CGT and pay any CGT due, if any. You'll need to file a CGT return as well when due.

Geuze

No capital gain on disposal, therefore no CGT.

How you acquired it is not directly relevant to the disposal.

Whether you sell it or gift it does not change the CGT calculations.

dennyk

You would be liable for CGT when you dispose of it, even if you are gifting it to someone. Since you aren't selling it and you didn't purchase it, the CGT calculation would be determined by subtracting the fair market value of the property at the time you acquired it from the fair market value at the time you disposed of it. If the value of the property is indeed lower than it was when you acquired it (which doesn't seem likely in the current market, but there are always edge cases), then you'd have a capital loss, which you could set against any other capital gains in this year or future years.

The person you are gifting the property to would also be liable for CAT on that gift, though whether they would actually have to pay anything depends on the current fair market value of the property, your relationship to the beneficiary, and the beneficiary's current CAT thresholds when taking into account other gifts from those in the same CAT group. If you paid CGT on the disposal, the beneficiary can claim a credit for the CGT you paid on disposal of the asset against their CAT liability.

adrianw

https://www.boards.ie/discussion/comment/121731978#Comment_121731978

How the property was acquired is extremely important especially as it was a gift “a few years ago”.

when a disposal is made and where CGT was potentially due/paid, there potentially was a CAT credit given for the CGT paid by the original disposer on the same event. Revenue are not unreasonable and don’t seek to tax the same transaction twice.

Under Section 104 CATCA 2003 if the property is disposed of with six years of the original transaction any CGT/CAT credit that was originally given may be clawed back and a CGT liability may arise on the onward disposal.

This is NOT advice but OP proceed with caution if you are planning on transferring a property without taking proper advice. How the original transaction occurred and when (if within six years) is extremely important.