Gift (CAT) Query

ButtUcks

Imagine this scenario:
A friend of mine was about receive a gift to the amount of 125k, from his brother. But he understands that he would be liable to CAT after the first 33,208k at 30%.

Therefore, could the brother give his friend, the friends wife and their 3 children 25k each, as a result they would not be liable for any CAT tax?

What do you think?

Mr. Incognito

Hypothetically yes.

Just ensure the man and his wife are seperately assessed,

namenotavailablE

You might double check the correct threshold for the gift from brother-in-law to sister-in-law.
It might be €16750 instead of €33500 in which case there would be a CAT exposure for that element. As above, get professional advice.

ButtUcks

Just had another thought - the full amount could be given to their mother and then she could give it all to my friend - therefore no CAT??

namenotavailablE

That is likely to be caught under the 'gift splitting' rules

nompere

Mr. Incognito wrote: »

Hypothetically yes.

Just ensure the man and his wife are seperately assessed,

There's no joint assessment for CAT - it doesn't matter whether they are jointly, separately or singly assessed. But, as noted, the wife probably has a lower threshold.

ButtUcks

Thanks to all contributors for your input, it is very much appreciated.:)

KCTK

namenotavailabl wrote: »

You might double check the correct threshold for the gift from brother-in-law to sister-in-law.
It might be €16750 instead of €33500 in which case there would be a CAT exposure for that element. As above, get professional advice.

Yes gift to sister in law in the €16,750 bracket. Only Brother, Sister, Niece and Nephew in the €33,500 bracket

nompere

KCTK wrote: »

Only Brother, Sister, Niece and Nephew in the €33,500 bracket

And:

Grandparent,
Greatgrandparent (in theory anyway),
Grandchild (except where the grandchild is the minor child of a deceased child),
Greatgrandchild.

(And further up and down the line, though great greats are pretty rare.)