Share transfer / gift - CAT & CGT

[Goldie]

Hi,

Can somebody please clarify the CAT & CGT & any other tax liabilities under the following scenario -

Sibling 1 proposes transferring / gifting €25k of quoted shares to each of sibling 2 & 3

As the proposed gift is less than the €33,208 Group B (Sibling to sibling)CAT threshold is this free from CAT?

What is the CGT position if / when sibling 2 & 3 sell the shares at a later date?

Thanks,

Goldie

 

[Nige]

Provided those siblings have not previously received gifts/inheritances under Group B, then there won't be any CAT.

Sibling 1 will have a CGT liability if they originally paid less than 50k for those shares (subject to indexation, if they were acquired before 2003).

When siblings 2 and 3 dispose of the shares, they will be subject to CGT (currently at 25%) if the shares are worth more than value at the date of the gift (25k) plus the stamp duty paid (1%).