CAT exemption/threasholds

jimmii

If I receive a gift of upto €225K cash from a parent is it tax free?

Everything I have read on the revenue site seems to suggest that upto 225k is no tax and it was only after that it was taxed at 33% but a solicitor said that it would be liable to some tax but wasn't sure how much. Am I just reading the revenue site poorly or has he got the wrong end of the stick?

Thanks,

Jimmii

dogsears

jimmii wrote: »

If I receive a gift of upto €225K cash from a parent is it tax free?

Everything I have read on the revenue site seems to suggest that upto 225k is no tax and it was only after that it was taxed at 33% but a solicitor said that it would be liable to some tax but wasn't sure how much. Am I just reading the revenue site poorly or has he got the wrong end of the stick?

Thanks,

Jimmii

Might be tax free - the tax free threshold for a gift from parent to chid is €225k alright, but you need to take into account prior gifts since 1991 to see whether cumulatively you're over the threshold. If there were other such gifts then you may need to get professional advice.

glued

You can actually receive €228K CAT free.

jimmii's parent gifts jimmii €228,000

€228,000
-€3,000 Small Gift Exemption

---

€225,000
-€225,000 - Threshold A

---

0 - CAT due

Your parent can also gift a payment of CAT

€400,000 - jimmii's parent wants to gift €400k cash to jimmii
-€3,000 Small gift Exemption

---

€397,000
-€225,000 Threshold A

---

€172,000
x 33%

---

€57,276 - CAT

€57,276 - CAT due on gift
€397,000 - Previous Benefit

---

€454,276
-€225,000 - Threshold A

---

€229,276
x 33%

---

€75661.08 - Total CAT payable on GIFT

SO essentially jimmii's parent is paying €475,661.08 so jimmii can have €400,000 cash.

jimmii

Excellent thanks!