Capital gains on family property

[mgeo]

Hello

We have received an offer for the sale of a property given to myself and my brother as a gift from our mother. The title deeds were transferred to our names 3 months ago. Do you know if there are any exemptions to the capital gains payable on the sale of a property obtained as a gift from a parent? And also are these capital gains taxed on the current value or 1980 value?

It is not a main residence and would have been used as a family holiday home.
Thank you

[Pantheman]

Hello

We have received an offer for the sale of a property given to myself and my brother as a gift from our mother. The title deeds were transferred to our names 3 months ago. Do you know if there are any exemptions to the capital gains payable on the sale of a property obtained as a gift from a parent? And also are these capital gains taxed on the current value or 1980 value?

It is not a main residence and would have been used as a family holiday home.
Thank you

There is no exemption due to it being a gift :(

However, you do each have a €17,086 allowance on any gains. The CGT is calculated on the gains minus purchase costs, legal fees, TFs any registered agency fees and inflation.

So depending on what you paid for it and what you are selling it for, the the CGT is calculated accordingly.

NOTE: Not many people know this, but given you have only just received the titles in your names and are selling almost immediately, you may be subject to income tax rather than CGT. Depending on your gains consider if it is worth selling right now. You should have had the property for at least 6 months to be considered for CGT in place of IT.

Hope this helps.

Pan

[mgeo]

Thank you Pan. very helpful

[del-froogo]

Hi,
Wondering if the capital gains taxation rules are the same regarding inheritance as opposed to a gift?
We live in the UK and have an inherited property which may finally be selling, if so, what would be our CGT liabilities and where would they be paid?

[Pantheman]

Hi,
Wondering if the capital gains taxation rules are the same regarding inheritance as opposed to a gift?
We live in the UK and have an inherited property which may finally be selling, if so, what would be our CGT liabilities and where would they be paid?

The same CGT rules will apply upon selling and the taxes are paid in Cyprus.

A gift means no money changing hands, but when sold eventually could be subject to CGT depending how it was originally obtained.