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Redundancy gift?

  • 20-10-2017 7:46pm
    #1
    xlogo
    Registered Users, Registered Users 2 Posts: 862 ✭✭✭


    If I was made redundant could I give my redundancy payment to my children as a gift? Or are there any implications I should be aware of?


Comments

  • #2
    L1011
    Registered Users, Registered Users 2 Posts: 71,113 ✭✭✭✭L1011


    Normal CAT rules will apply - if its over the 3k limit for a year it comes out of the lifetime limit. There is no special provision for it being redundancy money

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


  • #3
    elperello
    Registered Users, Registered Users 2 Posts: 16,095 ✭✭✭✭elperello


    Your spouse can give them 3k p.a. also without any CAT.


  • #4
    xlogo
    Registered Users, Registered Users 2 Posts: 862 ✭✭✭xlogo


    It wouldn't be a yearly thing just a once off of approx 30k each.


  • #5
    L1011
    Registered Users, Registered Users 2 Posts: 71,113 ✭✭✭✭L1011


    xlogo wrote: »
    It wouldn't be a yearly thing just a once off of approx 30k each.

    There'll be no tax but it'll come out of the lifetime limits which may be an issue if there is an inheritance however far in the future.


  • #6
    elperello
    Registered Users, Registered Users 2 Posts: 16,095 ✭✭✭✭elperello


    xlogo wrote: »
    It wouldn't be a yearly thing just a once off of approx 30k each.

    Well in that case it will reduce the amount they each can inherit free of CAT by 30k.
    You will have to decide if that's a good deal for you based on the value of their future inheritance.
    If you spread the 30k over 5 years ie. 5x6k it won't affect their lifetime limit.


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  • #7
    Victor
    Registered Users, Registered Users 2 Posts: 78,574 ✭✭✭✭Victor


    If disposing of an asset to reduce total asset values for social welfare or similar purposes, the disposal might be disregarded. However, there may be enhanced asset limits in redundancy situations.
    elperello wrote: »
    Your spouse can give them 3k p.a. also without any CAT.
    Is the €3,000/year per recipient or per donor? If per donor, would that make the vast majority of wedding gifts CAT-free?


  • #8
    ballyargus
    Registered Users, Registered Users 2 Posts: 1,024 ✭✭✭ballyargus


    What if you lost 10k in a poker match to someone you knew


  • #9
    lifeandtimes
    Closed Accounts Posts: 2,021 ✭✭✭lifeandtimes


    Is this to avoid certain taxs?

    Initially the first 10k of redundancy is tax free and then you apply to have a further 10k tax free of you haven't received a lump sum payment in the precious 5 years or don't have a pension.

    This info can be found on citizen information.

    After that depending on the size of the payment normal taxs apply regardless of if you accept the payment and give it to a family member, these have be discussed in previous posts


  • #10
    SeanHarty
    Closed Accounts Posts: 648 ✭✭✭SeanHarty


    ballyargus wrote: »
    What if you lost 10k in a poker match to someone you knew

    or even 90k spread between 3 people.... that would be terrible bad-luck ;)


  • #11
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,804 ✭✭✭GerardKeating


    ballyargus wrote: »
    What if you lost 10k in a poker match to someone you knew

    Would this not be taxable income for the winner ?


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  • #12
    Del2005
    Registered Users, Registered Users 2 Posts: 19,100 ✭✭✭✭Del2005


    GerardKeating wrote: »
    Would this not be taxable income for the winner ?

    I always thought that winnings from gambling was tax free. I know that bookies covers the tax on their bets but in a casino is there taxes on the winning?


  • #13
    Victor
    Registered Users, Registered Users 2 Posts: 78,574 ✭✭✭✭Victor


    GerardKeating wrote: »
    Would this not be taxable income for the winner ?
    Only if they were gambling professionally, which is typically limited to bookmakers and the like.


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


    Del2005 wrote: »
    I always thought that winnings from gambling was tax free. I know that bookies covers the tax on their bets but in a casino is there taxes on the winning?

    They need to be genuine bets. Revenue tend to hold that bets outside of professional agencies are not genuine unless you jump through a lot of hoops and bets on a game of chance or skill can never be genuine unless at arms length.


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