Does a grandparent paying creche fees constitute a gift to the child's parent?

[Purple]

As above, if a grandparent pays the creche fees for their grandchild are there tax implications?

 

[DannyBoyD]

You have the 3k per grandparent exemption anyway; which could give you 6k without gift tax.

There used to be an exception for education fees / costs; since many creches also include playschool / early learning would that apply?

But in all honesty if the DD comes from Granny Mary's bank account instead of Mammy Jane is Revenue really going to hunt you down?

IANATE

 

[RedOnion]

Technically, yes it's a gift, so would utilise annual small gift exemption, and eat into lifetime allowance.

 

[bipped]

From Revenue:
You may receive a gift up to the value of €3,000 from any person in any calendar year without having to pay Capital Acquisitions Tax (CAT). This means that you may take a gift from several people in the same calendar year and the first €3,000 from each disponer is exempt from CAT.
Gifts within this limit are not taken into account in computing tax and are not included for aggregation purposes.
This small gift exemption applies only to gifts and not to inheritances.

 

[michaelm]

Technically, yes it's a gift, so would utilise annual small gift exemption, and eat into lifetime allowance.

Are you sure it eats into lifetime allowance? Does "not included for aggregation purposes" not mean it doesn't eat into anything?

 

[Gordon Gekko]

Revenue would have no interest in something like this, unless they were out to get the person for something else.

 

[RedOnion]

Are you sure it eats into lifetime allowance? Does "not included for aggregation purposes" not mean it doesn't eat into anything?

The amount in excess of the small gift allowance.