CAT on 10k gift to friend?

P

paddytheape

Registered User
Messages
31
I wish to gift 10k to my sister in law (though they are not yet married so effectively a friend for tax purposes) to set up a small business for herself.
I've google and found CAT threshold of €15, 075 for a gift to friend. Can anyone please confirm this is correct?

If I give a loan instead to make it easier (conscious wise) for her to accept, can I simply hand over a bank draft and call it a five year loan at 4 %. Any tax implications here for either of us?.
My s-i-law is very competent, trustworthy and gave up work to raise the kids. This woild get her back to work. Thanks for any advice.
 
You can also avail of the small gift exemption of €3,000 per annum thereby not using up as much of her CAT threshold. The gift can be spread out over a couple of years if possible to reduce further.

If it is for a college course or something there may be relief due to you for paying fees directly.

Call it a loan by all means but if you get into charging interest then you are liable to income tax on the interest which makes it a bit messier from your point of view.

The sister-in-law would be liable to CAT on the "interest" you don't charge, but the amount in your example is only €400 per annum so well covered by the small gifts exemption.
 
If you're married, you could look at gifting the whole €10k to them...money comes from a joint account to their joint account...4 x €2,500 which is less than the Small Gift Exemption.
 
You must log in or register to reply here.
Back
Top