Gift of €200k- when to declare, when to pay tax

[HopefulBuyer]

Hi.

I didn't know where best to ask this question, here or in tax. My uncle wants to help me buy a house and I would like to know about the transfer he sends me (200k).

Do I declare it or do the bank take care if that when it lands in my account? Is the gift tax payable immediately or only at end of year tax declaration?

Thank you

 

[Brendan Burgess]

It has nothing to do with the bank.

You must make a return.

You must pay the tax which is known as Capital Acquisitions Tax.

How and when do you pay and file?

This page tells the reader when and how to play their CAT

www.revenue.ie

 

[Brendan Burgess]

If you have received no other gifts or inheritances from others in Group B ( Mainly aunts uncles and grandparents)

You have a lifetime exemption of €32,500

The balance is taxed at 33%

So if you get €200k from an uncle today

Your tax liability will be

€200k - €32,500 = €167,500
CAT at 33% = €55,275

And you must pay this by 31 October 2024.

Brendan

 

[HopefulBuyer]

Thank you Brendan

I'm glad you pointed out the Oct date, as i would have assumed Dec. I appreciate it

 

[Pinoy adventure]

Could you make use of the small gift allowance too for this year ?

 

[Philip S]

Hi, OP

Few items to consider here. The bank may look for your uncle to sign a gift letter which will include a part to say he has no right in the house. They may also look at gift as a post tax amount or look for tax to be paid ahead of drawdown.

 

[misemoi]

Do you need all of it now ? Could he give you 3k early next year as a small gift ie to purchase furniture or do the garden next spring ? Does he have a wife that could do the same ? Would save you some tax.