Capital Acquisitions Tax

Frank Bullitt

Been reading up on this and I have one question around the 3,000 gift a year per parent.

I live abroad but am looking at transferring some funds that my folks want to give me while i am away.

My main question is, how would this 3,000 a year be tracked if it was a cash gift, or does it have to be declared at a certain point in the future?

Thanks

sharky86

Assuming your referring to the small gift exemption? You can receive a gift of up to €3k from any person in any calendar year.

So if your parent gives your €3k or less as a gift, you don't need to do anything. If that same parent were to give you €5k then the taxable value of the gift would be €2k after the small gift exception was taken off.

in order words your parents can each gift you €3k each per year without it affecting your lifetime limit or you having to worry about returns etc etc.

Frank Bullitt

https://www.boards.ie/discussion/comment/117989486#Comment_117989486

Right, but how is it tracked though? Does it have to be declared?

relax carry on

https://www.boards.ie/discussion/comment/117989873#Comment_117989873

You track it in case any questions are ever asked about it as its a self assessed system. As you'd be using up the annual exemption, you don't have to declare anything.