Tax on foreign property gifted to children?

Hi, We are trying to ascertain if there are any tax implications if my parents gift property with associated land, circa 1 acre, to their four children. We are all located in Northern Ireland and the land and property is in the Republic of Ireland. This is a holiday home strictly for family use, no income has ever been generated from it and this the intended usage moving forward. It’s hard to find out what this might mean tax wise, any information is much appreciated. We’d like to know from both the perspective of our parents as the people gifting and also from the children as the people receiving the gift. Thanks, LS

Hi Niall Mullan,

There is no tax implication for those receiving the gift unless the property generates an income or if you the sell it.
There may be capital gains due for your parents as this is still seen as selling a property -
Tax when you sell property

Thank you.

Hello, I have a similar situation. In the case, I donate (I'm living in UK since 22 with Skilled worker visa) a property in Italy to my son (2 years old), do I need to pay any taxes in UK? How my son will pay taxes on the rental income from that property? Thanks Regards, PC

Hi,
Potentially, yes.  
As a UK resident, you are required to declare your world-wide income and capital gains each year in a self assessment tax return.  
You will need to convert the acquistion cost of the property to GBP sterling, using an exchange rate in use at the time.  
You would also have to obtain the market value of the property when it is gifted to your son and convert this value to sterling.  
The difference between the acquistion cost and market value, is either a gain or a loss.  
From this you can deduct your costs for disposing of the property.  
Have a look at Tax when you sell property.  
If the property was your main residence, then you can apply private residence relief.
 Have a look at helpshett HS283 (HS283 Private Residence Relief (2024) Updated 6 April 2024.
Thank you.