CAT Tax on Gifts to Category C people and HAP

S

Stitcher

Registered User
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Hi,
I want to gift 10,000 to a friend, (Cat C) an OAP with less than full contributory pension, no other income, but small savings, (<10,000) who receives a HAP payment towards their rent. Does the gift affect their HAP payment? I assume they declare the gift on My Account and that it will not be taxed?
Thanks
 
1. The gift will not attract income tax.
2. It may atract capital acquisitions tax, if the recipient has previously received other gifts or inheritances in Category C, and the aggregate of all these gifts and inheritances exceeds €20,000.
3. HAP is means tested, but so far as I know the means test looks at income only, so a gift of a capitall sum won't affect the means test. However any interest, dividends or whatever that the recipient earns from depositing or investing the gift will count towards the means test.
 
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