Capital Acquisitions Tax question

helldesign

Hello.

I'm preparing to make an attempt for a mortgage and luckily my parents wish to help me out with 35k as a gift. I got hyped until I found about the Capital Acquisitions Tax.

Does it mean that if they send me 35k I will have to pay 1/3 for tax (33%)?

Is there any exception at least, when buying first home or something like that?

SureYWouldntYa

There is a lifetime threshold for parents giving money to their children which is tax free

It is €335,000

Only when above this amount in your lifetime will CAT of 33% apply

There is also a yearly exemption of €3,000, this is from any person to another and will not eat into your threshold

So you parents can give you the €35k, 3k from each of them will come off your yearly exemption leaving 29k to be taken off your lifetime threshold from your parents. If you have a partner who is buying the house with you they can give him/her 3k each also, which would only leave 23k to be taken off your lifetime threshold

Have a read of the below

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

helldesign

I'm so relieved to hear that!

Thank you for explaining, I really appreciate it!

Will Yam

SureYWouldntYa wrote: »

There is a lifetime threshold for parents giving money to their children which is tax free

It is €335,000

Only when above this amount in your lifetime will CAT of 33% apply

There is also a yearly exemption of €3,000, this is from any person to another and will not eat into your threshold

So you parents can give you the €35k, 3k from each of them will come off your yearly exemption leaving 29k to be taken off your lifetime threshold from your parents. If you have a partner who is buying the house with you they can give him/her 3k each also, which would only leave 23k to be taken off your lifetime threshold

Have a read of the below

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

What you could do also, time permitting is to delay some of the payment until the end of the year.

In that way your parents can give you a further 6k outside your threshold - and if a partner is involved 12k - thus reducing the amount off lifetime threshold to 11k.