Gift Tax

Blanco100

Hypothetical scenario

I receive a gift of €20k from my father toward a house deposit.

What are the steps? Does he/I need to inform revenue of this? Can he just transfer this to my account?

I know that there is a lifetime amount of 320k tax free from parent to child, but is tax paid on an amount of 20k in one go? And who needs to be notified of this transaction

Any advice would be greatly appreciated?

Stratvs

No notification required until you hit 80% of the relevant threshold amount.
He is giving you €20,000 but you can deduct the €3,000 small gift exemption so €17,000 comes off your lifetime threshold.
He can transfer to your account.
No tax applies until you exceed the threshold.

https://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

Do you have a partner/wife? If so your father can give her 3k of the 20k to further reduce your use of the lifetime threashold. If the money is coming from both your parents then you can get 6k and your wife partner could get 6k leaving your life time threashold only reduced by 8k.

Sleeper12

You can receive 3k tax free from each individual person. You can receive 3k from your mam and 3k from your dad. If it's actually coming from your mam & dad then you can receive a total of 6k leaving 14k coming off your lifetime parents gift/inheritance allowance

Blanco100

But who do i notify about the gift?
My dad will transfer 20k to my account in one go, who will keep track of the amount to come off the lifetime amount?

thegolfer

Blanco100 wrote: »

But who do i notify about the gift?
My dad will transfer 20k to my account in one go, who will keep track of the amount to come off the lifetime amount?

You notify no one at this time.

You record the gifts received against the life time threshold, and once exceed then notify Revenue.

It's a self reporting system.