gift tax threshold

teddybundy

Hi

just a quick question, i understand the gift tax threshold is €32500

can two family members gift this amount each tax free, or can a individual only receive a lifetime total €32500 from all family members

Thanks
Sean

Squatter

teddybundy wrote: »

Hi

just a quick question, i understand the gift tax threshold is €32500

can two family members gift this amount each tax free, or can a individual only receive a lifetime total €32500 from all family members

Thanks
Sean

That depends on what you mean by "family members"

See here for the thresholds for the 3 differing family groupings

http://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/current-cat-thresholds-post-12-october-2016.aspx

Also read the page about aggregation of gifts:

http://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-aggregation-rules.aspx

teddybundy

hey squatter

thanks for the reply,
i guess the basic question is

can a son give a father a gift of €32500 tax free

and also can a daughter at the same time give another €32500 to the father tax free , as it is a seperate gift

Squatter

teddybundy wrote: »

hey squatter

thanks for the reply,
i guess the basic question is

can a son give a father a gift of €32500 tax free

and also can a daughter at the same time give another €32500 to the father tax free , as it is a seperate gift

No. Under the aggregation rule, the father can receive only a total of €32,500 tax free from Group B family members. He would be liable for CAT on any further gifts received from Group B family members.

It is open to conjecture as to whether it might be possible for a father to receive a further gift of €16,250 from, say his son-(or daughter)-in-law (a Group C family member) - certainly the rules don't appear to prohibit it!

teddybundy

Thanks again squatter!

Do you know is the€32500 a lifetime gift?

Am i right in thinking i can gift another €3000 a year after this tax free?

thanks again for the help
sean

Squatter

teddybundy wrote: »

Do you know is the €32,500 a lifetime gift?

From the perspective of the exemption from paying CAT on gifts received from Group B family members, yes.

teddybundy wrote: »

Am i right in thinking i can gift another €3000 a year after this tax free?

Yes. The annual small gift exemption is €3,000. This is the maximum amount which anyone can give to anyone else without it ever being taken into account in assessing one's liability to CAT.

In a large family of say 10 children, each of them could gift €3,000 annually to both their mother and their father without any CAT liability arising - ever!