Gift Tax query

M

money man

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I have just received a gift from my aunt that is below the threshold for gift tax. I believe this is 38k? or thereabouts. Do i have to declare this money or file a return or anything even though there is no tax payable by me? Am i correct in saying that i do not owe any tax on this gift?
 
A gift from a Aunt is considered within Group B. The theshold is 48K. You can only use the theshold once or until a series of gifts/inheritances passes the theshold. You are then taxed on anything received from others within that group @ 20%.


from revenue
Indexed Thresholds for Capital Acquisitions Tax - 2006
Gift and Inheritance Tax

For the purpose of Gift and Inheritance Tax, the relationship between the person who provided the gift or inheritance (i.e. the Disponer) and the person who received the gift or inheritance (i.e. the beneficiary), determines the maximum tax free threshold - known as the "group threshold". Three Group thresholds were introduced on 1 December 1999 in respect of gifts and inheritances taken between 1 December 1999 and 31 December 2000. The Group thresholds are indexed by reference to the Consumer Price Index and the indexation factor for 2006 (1 January 2005 to 31 December 2005 inclusive) is 1.255. The indexed Group thresholds for 2006 are set out in the table below.


Group..... Relationship to Disponer ..............................Group Threshold A............Son/Daughter...................................................€478,155
B............Parent*/Brother/Sister/ Niece/Nephew/Grandchild....€47,815
C............Relationship other that Group A or B......................€23,908
Click to expand...

See also this tread re 80% rule
 
Do i have to declare anywhere though? or do i just put the money in my account and dont worry? Im sure i must declare it to some authority at some point? Even though im under the limit for paying any gift tax.
 
The 80% rule, as mentioned above, is the threshold at which the gift(s) must be declared. [when you hit 80% of a group threshold you must let revenue know]

One of the threads above I do pass mention to a "must declare under certain circumstances" taken from Revenue, but in a straightforward gift situation like this I'd assume you shouldn't fall into any special area. Call Revenue for clarification if you wish for confirmation.
 
Thanks very much to both of you. Im not going to declare but will keep a record. Thanks for the advice and posts.
 
Just to clarify, if you receive any further gifts from brothers sisters aunts uncles you could go over the 80% rule and the treshold.
 
asdfg said:
Just to clarify, if you receive any further gifts from brothers sisters aunts uncles you could go over the 80% rule and the treshold.
Click to expand...
The threshold is also relevant to any previous gifts you may have recieved from people in that grouping.

(Some of the Revenue details available [broken link removed].)
 
I got a site for a house from parents- i want to sell it to buy a house down the road. Do i pay gift tax?
 
no i doubt it. i think you can get gifts up to 458k ??roughly from parents tax free there is a link in the above threads to a revenue document. its called gift tax and states that you dont need to pay gift tax up to a certain threshold.
P.S. get your own thread !!!!
 
But you may be liable to CGT on the difference in the value of the property when transfered and the selling price less legal expenses etc

Just to clarify, the value of all gifts inheritance with an exemption of an annual gift allowance of 3K are added together. The treshold is then deducted and you pay tax on the excess at 20%
Don't forget the 80% rule
 
Would you not also be liable to Stamp Duty if this was not paid as a PPR was not built on the Gifted Land ????
 
The only declaration you have to make if your below the threshold is:

If your gift is exceeding 80% of the threshold..you have to delcare it

However a certain amount is deductable each yr b4 wrokin out this figure

Not sure what it is now - but think it is around 3k per yr
 
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