CAT and using gifted money to pay mortgage

suevic

I read somewhere that if i were 'gifted' from a sibling the sum of around €70000, but wanted to use the money to put down a deposit on a mortgage plus pay off a few debts, that this might exempt me from CAT. In the case of using the money to pay of towards a mortgage, there were conditions such as the doner having no claim to the property, won't be living in the property etc.
The revenue kept telling me that its still a 'gift' regardless how I spend the money, but if its all going straight towards paying others and therefore not even entering my bank account, for one thing how would the revenue even know I was gifted anything in the first place.
Anyone got an insight into this?

nompere

suevic wrote: »

I read somewhere that if i were 'gifted' from a sibling the sum of around €70000, but wanted to use the money to put down a deposit on a mortgage plus pay off a few debts, that this might exempt me from CAT. In the case of using the money to pay of towards a mortgage, there were conditions such as the doner having no claim to the property, won't be living in the property etc.
The revenue kept telling me that its still a 'gift' regardless how I spend the money, but if its all going straight towards paying others and therefore not even entering my bank account, for one thing how would the revenue even know I was gifted anything in the first place.
Anyone got an insight into this?

Well this is what happened in the neighbouring jurisdiction to someone who thought that Revenue couldn't find out about gifts and inheritances.

http://www.independent.ie/irish-news/courts/kerry-woman-jailed-for-two-years-and-eight-months-for-lying-to-avoid-paying-tax-on-wealthy-aunts-estate-31056137.html

We have similar provisions here.

dogsears

When you ask questions like "how would the revenue even know" it looks very much like you're looking for support for not telling them. You won't get any from anyone who knows what they're talking about.

Ask yourself this - if the Revenue were to directly ask you the question "Have you received any gifts, including any money that may have been used to pay off a mortgage?" what are you going to do? Are you going to lie?

Seems to me that if you get a gift of 70k cash from your brother you have a CAT liability - using it to pay down a mortgage makes no difference to that any more than if you spent it on champagne and caviar.

As a matter of interest where was it you read about this apparent exemption?

suevic

First of all, I'm not looking to evade tax, all I'm asking is if there's any exemptions available if the monies being gifted are used in certain circumstances, such as paying towards a mortgage or debts. If there's none, then so be it, but I know what I read. The point of my question was to see if anyone else was familiar with such a clause that's all.

Unfortunately I can't find the website where I read this, it was on a work computer so I can't go back through the browsing history.

As for the question of whether I'm just going to lie to the revenue, well I'm afraid I'm not rich, powerful or connected enough for that game.

CIARAN_BOYLE

suevic wrote: »

First of all, I'm not looking to evade tax, all I'm asking is if there's any exemptions available if the monies being gifted are used in certain circumstances, such as paying towards a mortgage or debts. If there's none, then so be it, but I know what I read. The point of my question was to see if anyone else was familiar with such a clause that's all.

Unfortunately I can't find the website where I read this, it was on a work computer so I can't go back through the browsing history.

As for the question of whether I'm just going to lie to the revenue, well I'm afraid I'm not rich, powerful or connected enough for that game.

http://www.revenue.ie/en/tax/cat/guide/exemptions.html

Here is all the exemptions.