Does small gift exemption of €3000 get added to CAT threshold?

[Joe Nonety]

1. For a gift from a non-relative the CAT threshold is €16,250. Does the small gift exemption of €3000 get added to that?
e.g. if I got a gift of €26,250 from a non-relative, would I pay tax on €10K or €7K?

2. Do I need to file a return (IT38) if I get a gift...
a. under €3000?
b. under €16,250 (or under €19,250 if the answer to 1. is 'yes')?

 

[RedOnion]

Technically the first 3k of the gift (but not an inheritance) from any person in a year is disregarded, I.e. you only consider the amount in excess of 3k.

So in your example, you would pay tax on 7k (assuming no previous use of the lifetime threshold for that category).

If that person together with their spouse for example jointly gave you the gift, you would ignore the first 6k, and only pay tax on 4k.

There's no need to report a gift that avails of the small gift exemption.

You need to file a return as soon as you've used 80% of your lifetime threshold.

 

[Joe Nonety]

Technically the first 3k of the gift (but not an inheritance) from any person in a year is disregarded, I.e. you only consider the amount in excess of 3k.

So in your example, you would pay tax on 7k (assuming no previous use of the lifetime threshold for that category).

If that person together with their spouse for example jointly gave you the gift, you would ignore the first 6k, and only pay tax on 4k.

There's no need to report a gift that avails of the small gift exemption.

You need to file a return as soon as you've used 80% of your lifetime threshold.

OK, thanks.

Just on the lifetime threshold.
Say Group B which has a threshold of €32500 and includes siblings.
If your brother gave you €100K, that means you've used up all the threshold for Group B forever regards of whether it's that brother or another member of Group B such as a sister?
But that same brother or another member of Group B could give you €3K any another year under the small gift exemption, right?

 

[RedOnion]

Yes, both correct.