Gift tax - is this plausible?

[onekeano]

From Oasis

"A threshold of 466,725 euro applies to gifts/inheritances made by a person to his/her child"

Does this mean I could give a child (say 18) €50k gift and they pay no tax which they could then use to buy a property as an investment?

Roy

 

[ClubMan]

Does this mean I could give a child (say 18) €50k gift and they pay no tax which they could then use to buy a property as an investment?

Yes - obviously as long as it is your child.

 

[onekeano]

Thanks Clubman, it's my child alright. I hadn't realised this was allowable. Just one final point - does any such amount given mean that this later comes off the inheritance allowance?

Thanks
Roy

 

[ClubMan]

Yes - the limit relates to cumulative gifts where applicable - e.g. if you gift €50K now then your child has €416,725 of his/her inheritance/gift allowance from you left for use in the future.

 

[onekeano]

Still sounds like a good idea cos there probably will be nothing left then anyway

Thanks
Roy

 

[cobalt]

Also, under the annual small gifts exemption, you can give them €3,000 per year outside the tax system (i.e. it doesn't contribute towards the cumulative sum received that brings them closer to the CAT threshold).

So if they don't actually need a lump sum now, it would be more tax efficient to give them €3,000 p.a. on an ongoing basis - or maybe depending on your age/their age, some of the money as €3,000 pa and the rest as a lump sum when they need it.