Gift to Child

Discussion in 'Wills, inheritances and gifts' started by Feemar5, Jul 6, 2017.

  1. Feemar5

    Feemar5 Registered User

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    I have an investment of €60.000 which I would like to give to daughter for a deposit on a house. Is there tax implications for her - can it be written off against the €310,000 inheritance which is free of tax from parent to child. Thanks
     
  2. Easel

    Easel Registered User

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    Yes, it can be gifted tax free provided that the threshold has not been reached as a result of previous gifts/inheritance within this group.

    There is an annual allowance of €3,000 that you can gift tax free so only €57,000 will be deemed as being gifted. If your daughter is married or has children you can also gift her partner/children €3,000 tax free per annum.

    If at any point 80% of the inheritance/gift threshold has been reached the revenue need to be notified.
     
  3. noproblem

    noproblem Frequent Poster

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    Just wondering if you miss a few years not giving your children the €3000, can you give them a few years of it in one go?
     
  4. Foobar

    Foobar Registered User

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    Is the first 3000 allowance (before eating in to threshold) for all gifts that the person receives or can you receive 3k from multiple people without eating in to any allowance? Or is it 3k per category (A, B, C)?

    Eg, can you recieve gifts of 3k each from 100 people and pay nothing?
     
  5. noproblem

    noproblem Frequent Poster

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    I believe you get the gift from a parent and most of us wouldn't have 100 of them.
     
  6. Foobar

    Foobar Registered User

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    Is the first 3k allowance tax free only for gifts from parents to children? I didn't think it was
     
  7. Marsha25

    Marsha25 Registered User

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    As far as I understand, you can receive a gift of €3000 from multiple sources - not just your parents. If you had 10 wealthy, generous people in your life they could each gift you €3000 without tax implications.
     
  8. john luc

    john luc Frequent Poster

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    The 3K gift is from anyone to anyone. You can receive as many 3K gifts from as many people and they are tax free. Your next door neighbour could gift You,Your partner and each child 3K each and it would not be taxable. As regards trying to pretend you had gifted say 5 years of gifts in one calender year that would not be legal.
     
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  9. john luc

    john luc Frequent Poster

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    These gifts are in addition to your personal tax allowances.
     
  10. Foobar

    Foobar Registered User

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    What happens, in the OP's example, where a gift is given to her daughter as a deposit for a house who then jointly buys a house with her partner? Would Revenue see that as a benefit to both parties, and therefore be split 50/50 between both of their (Group A for here, Group C for partner's) allowances? Or will it only be seen as a gift to the daughter? Is it different if they are married?
     
  11. john luc

    john luc Frequent Poster

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    Yes as the partner is a beneficiary of the gift. If a parent gives a child a gift and the the child gives the gift to a partner for their benefit then revenue would view it that the gift was in fact given directly to the partner and not the child. Example is mother gives daughter 50K and she gives this 50K to her partner to use in say their personal business then if revenue was to see this they would take this view.
     
  12. john luc

    john luc Frequent Poster

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    It is dependent on how you make a return to the revenue.
     
  13. Feemar5

    Feemar5 Registered User

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    Many thanks - very helpful
     
  14. highsvr

    highsvr New Member

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    Can person (Y) gift €3k to 10 different people. Then those 10 people decide to each gift €3k to person (X) ?
    Whereby person (Y) has €30k less and person (X) has gained €30k and with no tax implications ?
     
  15. Vanilla

    Vanilla Frequent Poster

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    Depends on how long the 10 people hang on to the 3k. Google 'gift splitting'.