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Gift Tax

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  • 19-02-2021 11:51am
    #1
    Laura2021
    Registered Users Posts: 100 ✭✭


    Hi if I receive a gift of 36k - 48k
    Would I have to pay tax on it ?
    Can I get it transferred straight in my bank account?
    Would I just need a letter to say it is a gift?

    Any advice would be greatly appreciated thanks


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Most of your questions are answered here:
    https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx

    You will have to pay tax on it, you can just get it transferred to your bank account, and you don't need a letter to say it's a gift.

    If this money is to help you buy a property, the bank will often ask for a letter from the gifter confirming that it is a gift and not repayable. But Revenue don't need such a letter.


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    #3
    Geuze
    Registered Users Posts: 13,110 ✭✭✭✭Geuze


    Any CAT payable depends who you get it from.


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    #4
    Laura2021
    Registered Users Posts: 100 ✭✭Laura2021


    How much tax free money am I allowed each year from parent is it only 3k from each parent?


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    #5
    SureYWouldntYa
    Registered Users Posts: 7,724 ✭✭✭SureYWouldntYa


    Laura2021 wrote: »
    How much tax free money am I allowed each year from parent is it only 3k from each parent?

    Correct, 3k from each.

    There is also a lifetime tax free threshold from your parents, of 335k

    If they were to transfer you 50k, 6k of this would be tax free leaving 44k to be taken off your lifetime allowance which leaves the balance at 291k, assuming you havent previously used any of your allowance


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    #6
    Laura2021
    Registered Users Posts: 100 ✭✭Laura2021


    SureYWouldntYa wrote: »
    Correct, 3k from each.

    There is also a lifetime tax free threshold from your parents, of 335k

    If they were to transfer you 50k, 6k of this would be tax free leaving 44k to be taken off your lifetime allowance which leaves the balance at 291k, assuming you havent previously used any of your allowance



    How much tax would I pay on 44k if 6k is free ?


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    #7
    SureYWouldntYa
    Registered Users Posts: 7,724 ✭✭✭SureYWouldntYa


    Laura2021 wrote: »
    How much tax would I pay on 44k if 6k is free ?

    33% would be the rate, so 14.5k or so

    Unless you've already used up your lifetime allowance from your parents then you won't have a tax liability


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    #8
    Geuze
    Registered Users Posts: 13,110 ✭✭✭✭Geuze


    SureYWouldntYa wrote: »
    33% would be the rate, so 14.5k or so

    Unless you've already used up your lifetime allowance from your parents then you won't have a tax liability

    PLEASE NOTE

    You can receive 335k tax -free from your parents.


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    #9
    Geuze
    Registered Users Posts: 13,110 ✭✭✭✭Geuze


    Laura2021 wrote: »
    How much tax would I pay on 44k if 6k is free ?

    If your parents make a gift to you of 44k, and if you have not reached 335k in gifts from them,

    then the 44k is free of CAT.

    No tax, until you reach 335k.


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