The Disposal of a Property By Way of a Gift
For Capital Gains Tax purposes you are treated as having sold the property at its market value which is treated as the sale proceeds and the gain calculated in the same manner as an outright sale.
Calculate your gain using our calculator and substitute the market value for the sale proceeds.
Generally this type of situation will arise within families. In addition to Capital Gains Tax you also have to consider Gift Tax and Stamp Duty which will arise on the gift.
The Capital Gains Tax payable, if any, is allowed as a credit against any Gift Tax that may also be due. In effect the greater of the two taxes is what is paid. If the asset is disposed of by the recipient within 2 years of its acquisition then both Capital Gains Tax and Gift Tax are payable.
You must make tax returns in respect of both the Capital Gains Tax and the Gift Tax (‘Capital Acquisitions Tax’).