Picture this scenario (using round figures for ease of interpretation) -
2001 - person receives gift of €75,000 from parent, below threshold, no tax paid
2009 - person inherits €500,000 from parent, threshold is €542,000, cumulative amount is €575,000, tax paid on €33,000, all good.
2012 - person receives gift of €10,000 from parent, cumulative amount is €585,000, but the threshold is now €225,000, so . . . there's 33% tax payable on €360,000
From my reading of the Revenue documentation this appears to be the case. Someone please tell me it ain't so. Please.
Is there no concept of having paid all due taxes in 2009? I understand why you might want to aggregate all gifts over the years, but does the threshold in force at the time not come into play?
z
2001 - person receives gift of €75,000 from parent, below threshold, no tax paid
2009 - person inherits €500,000 from parent, threshold is €542,000, cumulative amount is €575,000, tax paid on €33,000, all good.
2012 - person receives gift of €10,000 from parent, cumulative amount is €585,000, but the threshold is now €225,000, so . . . there's 33% tax payable on €360,000
From my reading of the Revenue documentation this appears to be the case. Someone please tell me it ain't so. Please.
Is there no concept of having paid all due taxes in 2009? I understand why you might want to aggregate all gifts over the years, but does the threshold in force at the time not come into play?
z