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Cgt and cat

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  • 13-04-2019 5:37pm
    #1
    Bettyob
    Registered Users Posts: 12 ✭


    Can Anyone explain cat and cgt to me? We are buying a property from husbands uncle for well below price. It’s an inherited property so he paid inheritance tax when he got it. We are trying to work out what cat we may have to pay and what cgt his uncle will have to pay.
    For example house is valued at 150,000, he’s selling for 50,000 and he paid inheritance tax of about 10,000 back when he first got the property.
    Figures are an example to get a rough idea.


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    #2
    Spanish Eyes
    Registered Users Posts: 15,971 ✭✭✭✭Spanish Eyes


    Basically he is giving you both a gift of the difference between market value and agreed price. The lowest tax free threshold for CAT applies here for you, and second threshold for your husband/partner as a nephew, based on your relationship with the donor. You will both be liable for Gift tax (less 3k each which is exempt).

    CGT will apply for uncle if the market value on sale/gift is greater than what he inherited it for. Unless he lived there as his Principal Private Residence up to the date he transfers it to you for less than market value.

    Get legal advice first. Minefield. But those are the basics.


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