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Gift towards mortgage

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  • 05-04-2021 3:27pm
    #1
    Luke774
    Registered Users Posts: 101 ✭✭


    Hi so I know you can inherit €320,000 tax free from a parent.

    You can be gifted something like €3,000 per year from a parent

    Getting a gift of around 30k towards a mortgage would I be taxed on that

    Would it be better to be gifted €3,000 over the next two year which will be 36k altogether


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    #2
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    The threshold for parents is for gifts and/or inheritances. So provided you have had no previous inheritances or gifts from parents then a gift of €30k would not be taxable. It could be treated as €27k after the annual small gift exemption. Or alternatively the parents could give you €30k which comes off your threshold from parents and each separately give you €3,000 which comes under the small gift exemption.


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    #3
    Luke774
    Registered Users Posts: 101 ✭✭Luke774


    Stratvs wrote: »
    The threshold for parents is for gifts and/or inheritances. So provided you have had no previous inheritances or gifts from parents then a gift of €30k would not be taxable. It could be treated as €27k after the annual small gift exemption. Or alternatively the parents could give you €30k which comes off your threshold from parents and each separately give you €3,000 which comes under the small gift exemption.



    Thanks that's good to know I have no previous inheritance or gifts. Would I get taxed on say 50k or once I never had previous inheritance or gifts I wont be taxed ?


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    #4
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    Luke774 wrote: »
    Thanks that's good to know I have no previous inheritance or gifts. Would I get taxed on say 50k or once I never had previous inheritance or gifts I wont be taxed ?

    To have exposure to tax you have to have exceeded the threshold from parents (group A ) Which is currently €335,000. Then it is 33% on amounts over that.

    https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-groups-and-group-thresholds.aspx

    So €50,000 would be well under that with no previous gifts/inheritances.


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    #5
    KevinK
    Registered Users Posts: 659 ✭✭✭KevinK


    Stratvs wrote: »
    To have exposure to tax you have to have exceeded the threshold from parents (group A ) Which is currently €335,000. Then it is 33% on amounts over that.

    https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-groups-and-group-thresholds.aspx

    So €50,000 would be well under that with no previous gifts/inheritances.

    Remember the 335,000 is a lifetime amount so it does to use the small gift exemption of possible, especially if you are likely to inherit anything in the future.

    Let's say for example you were to inherit a house from a parent down the line valued at 350,000. With with group A threshold still intact your tax liability would be 5,000. If you use up 50,000 of it you would pay 21,666 instead.

    3,000 is the exemption from person to person. So if you have two parents they can give you, 6,000 per year, if you have a partner both parents could give you both of you 3000 per year which is 12,000 in total. So 12,000 could be given in December 2021 and another 12,000 in January 2022.


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