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Gift from parent based in Northern Ireland (UK)

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  • 14-12-2022 9:41pm
    #1
    KJK1LL3R
    Registered Users Posts: 88 ✭✭


    Good evening folks,

    My father lives in Northern Ireland and has gifted me £10,000 primarily towards assisting me with saving for a house deposit here in the Republic. I still have a UK bank account up North with Ulster Bank. So my father transferred the money from his UK savings account into my UK current account where it currently resides. Should I now use something like TransferWise to send the money to my Irish bank account? This is how I originally moved my savings when I moved from Northern Ireland to the Republic since TransferWise was one of the cheapest methods. But I am seeking some advice on what is the best most tax-efficient way for me to legally inherit this gift from my father? HMRC in the UK are already aware that he has gifted the money to me as he declared it to the NI Pensions Centre when claiming Pension Credits.



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    #2
    Geuze
    Registered Users Posts: 13,205 ✭✭✭✭Geuze


    The CAT allowance is 335k for parents to children, so unless this 10k GBP brings you over the 335k lifetime allowance, there aren't any tax implications.



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    #3
    KJK1LL3R
    Registered Users Posts: 88 ✭✭KJK1LL3R


    https://www.boards.ie/discussion/comment/119997894#Comment_119997894


    I thought there was maybe something about a maximum allowance of €3,000 per year? But perhaps that €3,000 limit doesn't apply if the gift is from a parent as opposed to a friend for example?Does the group A CAT threshold of €335k take precedence over the small gift exemption limit of €3k? Or is it a case that I should only transfer €3,000 per year instead of the full £10,000 in one go?



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    #4
    blackbox
    Registered Users Posts: 4,212 ✭✭✭blackbox


    You can receive eur 3000 per year from a parent with no tax liability and no impact on CAT allowance.



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    #5
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators, Social & Fun Moderators Posts: 22,346 CMod ✭✭✭✭Pawwed Rig


    https://www.boards.ie/discussion/comment/119998206#Comment_119998206

    You can receive eur 3000 per year from ANYBODY with no tax liability and no impact on CAT allowance.

    OP without knowing your personal details it would be difficult to advise you but in general a gift from parent to child is a group A gift. If you have never received a group A gift before then you have nothing to worry about. There is not even a reporting requirement. You may just have cost yourself €2k + though depending on your future gifts/inheritance. A €500 bit of advice might serve you well. For example did he REALLY just give you £10k or did he give you €3k now, €3k in 2023, and so on? Or did he ACTUALLY give you and your spouse a gift of £5k each to be paid in 2 tranches. 1 this week and 1 in 3 weeks time??



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