Tax on gifts from Parents

[RPR]

Hello
This year I received gift in cash(6000 €) from my parents who are based outside EU. Do I need to pay tax on it? Is there a limit to how much a child can receive cash from parents annually?
Regards
RPR

 

[Gekko]

There's a small gift exemption whereby anyone can receive up to €3,000 per annum from anyone.

Assuming that's all you received from them, the €3,000 from each parent comes in bang on that small gift threshold so you should be fine.

 

[RPR]

Thanks for the reply. So I guess I need to pay 25% tax on the remaining 3000€.

 

[WaterSprite]

You can get €3,000 from each parent (or from anyone else for that matter) tax-free per annum.

 

[Gekko]

the €3,000 from each parent comes in bang on that small gift threshold so you should be fine.

You can get €3,000 from each parent tax-free per annum.

Thanks for the reply. So I guess I need to pay 25% tax on the remaining 3000€.

No you don't.

As we've both pointed out, the €6,000 shouldn't be taxable as you can receive €3,000 per annum from each parent without eating into your Group A threshold.

 

[RPR]

Thank you very much Gekko & Watersprite for clarifying. Really appreciate it.

 

[Gulliver]

Hello
This year I received gift in cash(6000 €) from my parents who are based outside EU. Do I need to pay tax on it? Is there a limit to how much a child can receive cash from parents annually?
Regards
RPR

RPR
I'm assuming that you received no other significant gifts or inheritances in recent years. This gift was from your parents, and according to my interpretation of Gift Tax (i.e. Capital Acquisition Tax) gifts from parents are tax free up to the Group A threshold - and that threshold currently is €332,084. This is not an annual threshold.

 

[Gekko]

RPR
I'm assuming that you received no other significant gifts or inheritances in recent years. This gift was from your parents, and according to my interpretation of Gift Tax (i.e. Capital Acquisition Tax) gifts from parents are tax free up to the Group A threshold - and that threshold currently is €332,084. This is not an annual threshold.

There's no need to utilise any of the group threshold as the gifts are covered by the small gift exemption.