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CGT - Succession

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  • 07-10-2015 1:15pm
    #1
    PaidV
    Registered Users Posts: 71 ✭✭


    Hi all, my parents built a new house a number of years ago and were renting out their original bungalow. Last year they transferred the bungalow to me and now their accountant is telling them they are liable for CGT on the transfer. I would have thought their was an exemption on the CGT or at least a threshold exempt for the transfer?
    The house was valued at €135k and when it was built in 1991 cost around 30k Irish Punts to build.
    Any thoughts on what the liability would be or a way of avoiding it?

    Any help would be welcome!!
    Tagged:


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    #2
    nompere
    Registered Users Posts: 1,675 ✭✭✭nompere


    I'm not going to give you property tax advice, as that's banned in here.

    As a general CGT rule, a gift is the same as a sale. The personal tax free amount is €1,270, and indexation from 1991 to 2014 is going to be around 1.44.

    So I agree with the accountant. I reckon the liability on the facts as you have given them would be in the region of €25,000.

    I think you are confusing CGT and CAT.


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    #3
    Immy
    Registered Users Posts: 260 ✭✭Immy


    Yes there is a CGT liability, however there will be some relief for when it was there principle private residence and also the annual exemption of €1270.


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