Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Changing CAT Thresholds & Foreign Gift

  • 22-07-2017 5:13pm
    #1
    Registered Users, Registered Users 2 Posts: 154 ✭✭


    Rather than making two threads I just put the two related topics into one thread. 

    The first part is related to changing CAT thresholds.Say I receive a gift of €20,000 from my parents in 2017 when the CAT threshold is €330,000, my tax free gift/inheritance is reduced down to €310,000.
    Let's say the the CAT threshold is increased by the government to €360,000 in 2018 and my parents give me €10,000 in 2018. Does this mean my tax free gift/inheritance is now €330,000 in 2018?


    The second part is related to gifts to and from parents-child when one of them is not resident in Ireland, but in Germany. Does anybody know how this should be treated in the case of giving and receiving a gift (e.g. parent living in Ireland gives gift to child living in Germany, and parent living in Ireland receives gift from child living in Germany)? 
    Would this be subject to German tax rules of Irish tax rules in both cases?

    Thank you in advance for your contribution.


Comments

  • Registered Users, Registered Users 2 Posts: 154 ✭✭TiNcAn


    After some further reading into this topic, I believe that the gift tax applies to the person sending it and not to the receiver. So this would mean that a parent living in Ireland sending money abroad to a child would be subject to Irish law and vice versa. 
    Can anybody confirm if this would be the case?


  • Registered Users, Registered Users 2 Posts: 78,574 ✭✭✭✭Victor


    TiNcAn wrote: »
    After some further reading into this topic, I believe that the gift tax applies to the person sending it and not to the receiver.

    My understanding would be different - it's Capital Acquisitions Tax - those that acquire pay. Different countries may have different rules - getting professional advice may be useful.


  • Registered Users, Registered Users 2 Posts: 154 ✭✭TiNcAn


    Victor wrote: »
    TiNcAn wrote: »
    After some further reading into this topic, I believe that the gift tax applies to the person sending it and not to the receiver.

    My understanding would be different - it's Capital Acquisitions Tax - those that acquire pay. Different countries may have different rules - getting professional advice may be useful.
    Thanks for the opinion. I am in the process of arranging a meeting with a financial adviser and just wanted to draw from other peoples knowledge beforehand to have a better idea what to expect.


  • Registered Users, Registered Users 2 Posts: 535 ✭✭✭dogsears


    Victor wrote: »
    My understanding would be different - it's Capital Acquisitions Tax - those that acquire pay. Different countries may have different rules - getting professional advice may be useful.

    This is right but whether there is a liability or not will also depend on the residence status of both the person giving the gift and the person receiving it.

    Its a good idea to meet with a financial advisor - for advance information it might be useful to look at the items in the stickies - e.g.here


  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    TiNcAn wrote: »
    Thanks for the opinion. I am in the process of arranging a meeting with a financial adviser and just wanted to draw from other peoples knowledge beforehand to have a better idea what to expect.

    If you look at the revenue cat manual you will note that CAT applies if either the disponer or the beneficiary is resident in Ireland. If one party is foreign their revenue may also make a claim to taxes on the gift and in a few cases the dta between the countries may be needed.


  • Advertisement
Advertisement