If you gifted €30k in cash, could that be counted as the amount exempt from CAT, while additional shares all qualify for CGT relief?
The OHT document also points out that for estate planning purposes CGT-able items should be left to the person who can best use the offset.
It can save 8% (25% tax vs 33%).
I don't understand this? What is the 25%? ( Is it 33/133?)
By "passing", do you mean leave as an inheritance?
Option 1 - Leave €133k as inheritance. No CGT. €44k CAT bill - net for nephew: €89k
Option 2 - Gift €97k shares and sell €33k shares to fund CGT. €42k CGT bill - if no base cost.
Option 3 - sell shares and gift cash - CGT and CAT
- €133k has therefore been moved on to the recipient at a tax cost of €33k (25% of €133k).
- 25% is better than 33%.
That is comparing gifting shares versus gifting cash. But if you want to give a gift and the only assets you have are shares then the comparison case should be: sell the shares then gift the proceeds, incurring both CGT and CAT. The recipient would get 45% of the original share value (67% of 67%). So it's a case of 33% is better than 55%. (Especially since you are going to incur the 33% on disposal in any case).
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