Hypothetical question really.
I have a variable offset mortgage with NIB, rate is around the 4.5% mark. For those not in the know, an offset means for every euro I have in my current account, its offset against my mortgage so its a euro less I pay interest on.
I have +- 200k outstanding on the mort
.
Now I have a family member with 100k on deposit at 21% over 5 years with post office (bit less then 4.5% per year). If the family member puts 100k into my current account, meaning I pay interest on 100k less while its there, at the end of say 5 years (or longer?) I give the 100k back plus the 21k she was going to be getting in the first place. I could even split it up annually to be 21/5 so 4.2k per year. They still get the same amount back.
What tax implications are there? Are there annual family gift taxes?
I have a variable offset mortgage with NIB, rate is around the 4.5% mark. For those not in the know, an offset means for every euro I have in my current account, its offset against my mortgage so its a euro less I pay interest on.
I have +- 200k outstanding on the mort
.
Now I have a family member with 100k on deposit at 21% over 5 years with post office (bit less then 4.5% per year). If the family member puts 100k into my current account, meaning I pay interest on 100k less while its there, at the end of say 5 years (or longer?) I give the 100k back plus the 21k she was going to be getting in the first place. I could even split it up annually to be 21/5 so 4.2k per year. They still get the same amount back.
What tax implications are there? Are there annual family gift taxes?