Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

Capital Acquisitions Tax question

Options
  • 12-05-2021 5:34pm
    #1
    helldesign
    Registered Users Posts: 59 ✭✭


    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?


Comments

  • Options
    #2
    SureYWouldntYa
    Registered Users Posts: 7,724 ✭✭✭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


  • Options
    #3
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    I'm so relieved to hear that!

    Thank you for explaining, I really appreciate it!


  • Options
    #4
    Will Yam
    Registered Users Posts: 671 ✭✭✭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.


Advertisement