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Hypothetical question re: lottery win

  • 18-11-2013 11:19pm
    #1
    NIMAN
    Registered Users, Registered Users 2 Posts: 34,681 ✭✭✭✭


    Say someone won €50m on the Euromillions and they gave away €1m each to family and friends, those people would have to pay tax on it, right?

    If so, how much?


Comments

  • #2
    wmpdd3
    Registered Users, Registered Users 2 Posts: 9,625 ✭✭✭wmpdd3


    I think its 33% of anything over 20,000!


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,620 ✭✭✭✭coylemj


    Yes, Capital Acquisition Tax at 33% would be payable though there is a tax-free threshold depending on the relationship between you and the beneficiary, it's the same rules that apply on inheritance.

    In recent budgets, the rate has gone up, it was 20% a few years ago and the thresholds have come down, see the rightmost column on the Revenue page here.....

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


  • #4
    NIMAN
    Registered Users, Registered Users 2 Posts: 34,681 ✭✭✭✭NIMAN


    Jez, thats high.

    So if I won and gave €1m to a brother, they would be taxed over €250,000, and a friend would be taxed €325k.

    Government earns their money easy some times!


  • #5
    ardle1
    Registered Users, Registered Users 2 Posts: 1,521 ✭✭✭ardle1


    NIMAN wrote: »
    Say someone won €50m on the Euromillions and they gave away €1m each to family and friends, those people would have to pay tax on it, right?

    If so, how much?

    Is that you NIMAN, I've been searching everywhere for you, I never thought I'd find you cous:)


  • #6
    oldyouth
    Closed Accounts Posts: 4,754 ✭✭✭oldyouth


    ardle1 wrote: »
    Is that you NIMAN, I've been searching everywhere for you, I never thought I'd find you cous:)

    Hi Cous, NIMAN's Bro here, haven't spoken in ages


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  • #7
    wmpdd3
    Registered Users, Registered Users 2 Posts: 9,625 ✭✭✭wmpdd3


    I'm sure the right financial advisor could find a tax effecent way of gifting!


  • #8
    D3PO
    Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    NIMAN wrote: »
    Jez, thats high.

    So if I won and gave €1m to a brother, they would be taxed over €250,000, and a friend would be taxed €325k.

    Government earns their money easy some times!

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

    gifting lottery winnings is gift tax exempt


  • #9
    clarkey1980
    Registered Users, Registered Users 2 Posts: 73 ✭✭clarkey1980


    D3PO wrote: »
    http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

    gifting lottery winnings is gift tax exempt

    Lottery winnings are exempt from Capital Acquisitions tax. Gifting money to others is not


  • #10
    Thoie
    Registered Users, Registered Users 2 Posts: 6,344 ✭✭✭Thoie


    My plan if I ever won the lottery is to make everyone in my family give me 50cents, so the ticket is then held by an uneven syndicate (with me being the largest share holder), and the tax free winnings would be split accordingly. Even if I don't win, maybe I'll just keep asking people for 50cents at random. By the end of the year I could have €50!


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