Gift Tax and Exemptions

Neffey

Hello,

I am a new user with a burning question on gift tax. I apologise that I cannot post links from the revenue site as I am a new user. Any advise is much appreciated.

My wife's mother would like to gift her €100,000 this year. On the revenue site, I can see there is a threshold of €225K on gifts and inheritance from a parent to a son or daughter.

On a separate page on the site it talks the following exemption:

"Various exemptions from gift and Inheritance Tax have been provided for. For example, the first €3,000 taken as a gift by a beneficiary from a disponer in any one year is exempt from tax as are gifts and inheritances taken by one spouse or civil partner from the other".

My wife would like to ensure that she is fully compliant when paying taxes if she does receive this gift. Would she owe tax on this gift or would it fall within the €225K threshold. She has not received any other gifts or inheritance in the past.

Thank you,

Neffey

dogsears

If she hasn't received any other gifts or inheritances in the past as you say then the tax free threshold will mean no tax is due. Also, as she isn't using up more than 80 per cent of the threshold she isn't required to submit a return.

Neffey

Thanks for the reply, really cleared things up for me.

Mr. Incognito

Please do not rely on an Internet forum for tax advice on gifts of 100k.

This is not a substitute for legal advice. Thread closed. Replying poster banned for three days. OP banned for a week.

Read the charter.