Gift tax?

DollyB

Can a parent give a child a gift of €50000 in one lump sum without either party having to pay any tax? And does the revenue have to be informed?

adrianw

yes the gift can be given provided the threshold has not already been used up by prior gifts.

A form IT38 needs to be completed.

HcksawJimDuggan

A form IT38 is only required if gift is in excess of 80% of threshold.

Assuming no prior gifts from Parent, €50,000 would be less than 80% of the group A threshold and form IT38 would not need to be completed.

http://www.revenue.ie/en/tax/cat/leaflets/it39.html

DollyB

Thank you, this would hypothetically be the first gift. Someone mentioned to me that even it being the first gift that the parent/giver had to pay a Tax, which of what I knew sounded very strange considering the threshold is €225,000.

Assuming no other money had been gifted that year it would also only be 47k of the threashold used up if given from one parent or 44k of the threashold used if given jointly by both parents as you can receive 3k per year per person tax free.