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Explain Capital Gains Tax SIMPLY!!

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  • 28-11-2009 4:17pm
    #1
    cailinmaith
    Closed Accounts Posts: 5 ✭


    Hi, it's a long story so I'll give a summary...
    Basically my boyfriend began building a house before we met three years ago. It's now a complete shell and just needs plumbing, electricity and to be filled. However, because he was self-employed he could only get a tiny mortgage of 80,000, and since this recession hit he won't get anymore. He thinks another 100,000 will be more than enough. I was going to buy my own property, which would cost me a lot more than 180,000 so we discussed it at length and decided I'd take it on as well to complete the house and we'd have a home to live in within a few months. And this is where the complication begins. He has a great tracker rate that the bank will not give to the two of us jointly, which means a much more expensive rate. If he signs part of the house over to me, apparently I am liable to capital gains tax....up to 30k! I cannot buy part of the house for a nominal fee as the bank will not allow this as it undervalues the property. To avoid the tax we either have to get married or I waive my rights to the house which I know is very dangerous for me. Basically has anyone dealt with this before? Is there anyway to sort this without spending a fortune on tax? Thanks!


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    #2
    Jo King
    Banned (with Prison Access) Posts: 2,139 ✭✭✭Jo King


    Surely you mean that you would be liable for Capital Acquisition Tax and/or your boyfriend liable to Capital Gains Tax?


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    #3
    dearg lady
    Closed Accounts Posts: 2,091 ✭✭✭dearg lady


    Probably get better responses in the taxation forum. Jo King mentions the correct taxes, it'll depend on the current market value of the property when he transfers to you. Actually You'd probably be as well to get professional advice, it's very hard to say with limited details.


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