Passing on INVESTMENT property to your children can be expensive from a taxation perspective.
Parents good intentions towards gifting children second homes or sites can often result on tax implications for the parents.
Capital Gains Tax (CTG) is a liability born by the parents and results in this transfer not being TAX free as initially intended. Property price are rising in certain locations resulting in this tax becoming an increasing issue. It is important to note that when conveying an investment property to a child you are liable for any CTG due, this is based on the difference between the original purchase price and its current open market valuation at the time of transfer. Normally a CTG bill will not arise if transferring a family home to a child as CGT relief for principle private residences. Land is different however and the land must be used for a principle private residence and the land must not be more than one acre with an open market valuation of below €500,000.