I think you may have misunderstood…Each parent could gift 3000 euro to you, per year, without reducing your lifetime allowance. So you could get 6000 euro per year and your spouse could get another 6000 euro. If your parents do this for 2 years, you and your spouse could receive the 24000 euro without any lifetime allowance reduction.
Why the quotes?I think you may have misunderstood…
My father “gifts”…
Kids keep the money, and kids pay their own college fees/books/pocket money/sports grinds. Sounds like good tax planning to me.Yes Landlord, that is perfectly fine. But I would ask your parents to give the €3K to each person separately, so your bank account gets €3K from your mum and €3K from your Dad, your wife gets the same from each of them into her bank account and the she transfers it to you etc. it just gets a bit trickier with the kids, €3K going into their acc and going back out into yours. If revenue ever looked at it, and doubtful if they would they would probably say it is a scheme for your parents to transfer money to you via your kids. What I would suggest is wait until Dec and have your parents give you and your spouse €3K each in late Dec and again in early Jan. Movement of money between spouses is fine.
Dominic Coyle literally points to the answer in his article:Is the 3 year rule a revenue rule or the legislation I wonder.
8.—(1) Where a donee takes a gift under a disposition made by a disponer (in this section referred to as the original disponer) and, within the period commencing 3 years before and ending 3 years after the date of that gift, the donee makes a disposition under which a second donee takes a gift and whether or not the second donee makes a disposition within the same period under which a third donee takes a gift, and so on, each donee is deemed to take a gift from the original disponer (and not from the immediate disponer under whose disposition the gift was taken); and a gift so deemed to be taken is deemed to be an inheritance (and not a gift) taken by the donee, as successor, from the original disponer if—
(a) the original disponer dies within 2 years after the date of the disposition made by that original disponer, and
(b) the date of the disposition was on or after 1 April 1975.
(2) This section shall not apply in the case of any disposition (in this subsection referred to as the first-mentioned disposition) in so far as no other disposition, which was connected in the manner described in subsection (1) with such first-mentioned disposition, was made with a view to enabling or facilitating the making of the first-mentioned disposition or the recoupment in any manner of the cost of such first-mentioned disposition.
I realise that but cannot read the article. I think it's good though you've put up the link to the act. I've no idea who Coyle is or his qualifications but I'd imagine there is some kind of disclaimer on legal advice in newspaper columns. - not suggesting he's incorrect. Anyway it seems we are all clear now on how to do correct tax planning on giving away money with zero tax. Currently not a problem I have. But always good to know the correct tax avoidance procedures. Wouldn't want to get caught out in tax evasion.Dominic Coyle literally points to the answer in his article:
Nor can I, but I simply googled "Capital Acquisitions Tax Consolidated Act (Catca) 2003" and skipped to section 8(1).I realise that but cannot read the article.