Looking for some advice, so thanks in advance!
My Parents last November gave myself and my wife €12,000 as a deposit to purchase a property. As I understand it this cash can be claimed tax free under the small gift allowance, €3000 per parent to me and my wife. €6k from my parents to me, €6k from my parents to my wife.
My parents then decided that they wanted to help us out again and instead of us taking a mortgage from the bank they would loan me the money to complete the house purchase.
We purchased the property for 145k, €12,000 we used from the previous cash my parents gave us €133,000 loaned to us by my parents.
My agreed repayment to my parents is €400 per month, they don't want any interest from the loan.
Does the loan exempt me from CAT or do I need to use my threshold allowance?
My thinking is that CAT would only come into force if the loan becomes a gift, say on the death of both parents, and it would be the loan minus any repayments I have made?
Ive also read that the small gift allowance would cover any interest on the loan and could I also use the allowance to reduce the loan futher?
Do my parents have to declare the loan as an income and be liable for income tax?
Do I need to declare anything?
Finally If I simply decided to declare the €133,000 my parents loaned me as a simple gift I understand that I don't need to file any paperwork because the gift does not extend over the 80% threshold allowance due to not receiving any previous gifts from my parents? (other than the small gift allowance)
Thanks for any help you can give and advice.