4.2 Examples of Non-Exempt Gifts/Payments/Benefits
Free Use of House
Parent buys a house for €1 million and allows his 30 year old daughter to have the free use
of the house indefinitely. The annual rental value of the house is €36,000. The free use of the
house is a gift equal to the annual rental value each year (less the annual small gift exemption of
€3,000). If two or more of the parent’s children have the free use of the house, the value of the gift is shared.
If the child ultimately inherited the house, that inheritance could be eligible for exemption from CAT under the principal private residence exemption in Section 86 CATCA 2003 once the conditions governing the relief were satisfied.
5 Examples of Gifts / Payments / Benefits that are Exempt
The following are examples of gifts / payments / benefits that are exempt from CAT:
Occupation of Family Home by Child
The non-exclusive occupation of the family home by a child (including where relevant the child’s spouse/partner) family member. Revenue’s view is that this does not give rise to a gift by the owner of the property to the family member. Thus, in line with Revenue’s long standing approach, there is no question of trying to attribute a value to “bed and board” provided by the owner of the house to a child (including where relevant that child’s spouse/partner) of any age.
Free Use of House by Child attending University
The provision of the use of a house owned by a parent rent-free, to a child not more that
25 years of age who is attending university, to help support and maintain the child while in university, is a normal and reasonable provision and is, accordingly, exempt from tax under Section 82 CATCA 2003.
