Gift/inheritance tax

digzy

My wife's aunt is terminally ill-she's about 2 months left. She's given a large cash gift to my wife, her brother and my mum in law over the hols. it's too much to leave lying about the house and will have to be lodged. I'm not sure how 'legit' the money is-she was in the pub business-especially when it's in cash. it's not something one'd like to ask her, especially now.We're extremely grateful too. Anyway, could there be any revenue implications for her family/estate if my wife declares this cash?

nompere

This is from http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

How do I file my return and pay my tax?

Gift Tax is a Self Assessment tax. The obligation to make a return to the Revenue Commissioners rests with the person who receives the gift. A IT38 Return (Inheritance Tax/Gift Tax Return) must be filed when a gift either by itself or when aggregated with prior benefits taken by the donee, exceeds 80% of the appropriate tax-free amount. Where a gift is made on or after 11 February, 1999, the donor is obliged to make a return in certain circumstances. Where the gift is made on or after 14 June 2010 and any relief other than the small gift exemption is claimed the IT38 must be filed online through ROS, Revenue's online service.

The thresholds are set out here:

http://www.revenue.ie/en/tax/cat/thresholds.html

The far right column gives the current levels.

The IT38 return requires the PPS numbers of both the giver and the receiver.

You really need to take professional advice if the gift is more than 80% of the threshold.

oscuro

Hi,i think that the inheritance tax topic is a bit confused.
Let's say that a son(beneficiary) inherits 225k from parent A and 225k from parent B, is the inheritance tax threshold calculated on the sum of those values or independently?
Thanks a lot

nompere

The two together.

oscuro

Thanks Nompere so it would be (450k-225k)*33%=74.2k because the tax threshold applies to the beneficiary and not each of the disposer.