How much can a son in law be gifted tax-free?

M

MrEarl

Registered User
Messages
2,717
Hello,

With regards to a once off lump sum, can someone please tell me what the tax free limit is for a parent gifting funds to a son in law, or a daughter in law, please ?

The parent intends to gift the maximum tax free lump sum to each of their children, but is also considering a gift to each of their children's spouses, hence the question.

Many thanks.
 
They're treated the same as a stranger, so fall under Group C. 16,604
Remember these are lifetime limits so it will use up his Group C threshold from any source. Similarly with the children, in the future any inheritance from the parents will be fully taxed.

At the values you're talking about a little thinking outside the box might be beneficial. There are certain asset classes that can be passed without attracting CAT.
 
There are fewer and fewer exemptions, but still a few, but all depends on circumstances (and require long term planning). I'm still at the stage that putting 6k a year per child will use enough of my resources! I'm not a tax professional, but it might be worth talking to one that specialises in estate / inheritance planning.

A lot of the property reliefs have been tightened up, but a parent can still gift a child a site for the purpose of developing their PPR tax free. Can be useful if not all children own homes yet.

Business Relief and Agricultural relief are probably the most valuable, but have strict rules. Commercial forestry qualifies for agricultural relief, so only valued at 10% of value if beneficiary holds for long enough after receiving. It was extended to land for solar energy in the budget this year.

For inheritance planning there can be some benefits in certain pension structures, but its minimal(30% Vs 33%).

For any children not tax resident in Ireland there might be more scope.
 
RedOnion said:
A lot of the property reliefs have been tightened up, but a parent can still gift a child a site for the purpose of developing their PPR tax free. Can be useful if not all children own homes yet.
Click to expand...

Just wondering if you could point me in the right direction for more info possibly on Revenue site for this subject? Had a quick look at Google, Revenue and Citizens Info but could not find exact details.

Thanks.
 
Up Rovers said:
Just wondering if you could point me in the right direction for more info possibly on Revenue site for this subject? Had a quick look at Google, Revenue and Citizens Info but could not find exact details.

Thanks.
Click to expand...
Have a look here for the summary rules. It's main use is a farmer gifting a site to a child, or anyone else building a house in the garden, but it applies to everyone. There are minimum holding periods.

[broken link removed]
 
Ensure to do the 3k gift from each parent - 6k per year. If applicable - Grandkids can also get the 2 grandparents x 3k = 6k in total each year in addition to their CAT allowance (think of it as college/school fund - yes interest rates are low).
 
You must log in or register to reply here.
Back
Top