HI All
Many thanks for your quick reply.
Could I just make one further inquiry/scenario , so as I am clear ? Thanks.
Since the inception of this act (1991?) if , as is the general way , My parents received , a gift / Inheritance , when their parents passed away
, if we use this as an example , for the purpose of my understanding the ramifications of this , say , my father received 100K and my mother 25k.
(paste from " Red Onion" above - " Capital acquisitions (inheritance) tax kicks in after 32,500 to each parent. You'd ultimately pay CAT in future on inheritance from your parents on amounts over 320k, so it could end up being taxed twice")
In this scenario , if I follow , My father has used his full exemption under the act. If I gave his 40K (half) this month I can utilize the 3k to me and 3k to his grandchild who lives with me, in this calendar year 2018 , give him 6K before year end and 6k again under small gifts in January (2019)
then the balance after that (80k - 12k = 68K) , 68k would bring a tax liability of 32% (Gift tax rate?) 24.000 euro , would have to be paid by parents to revenue , is that correct?
As regards my mother , (25k) this figure would be that would 7.500 short of the 32.000 mentioned above , in this instance , giving 40 k
can use the small gifts , exemption as like my father , so 12k (2018/2019) and discount the 7.500 ... adding these two figures comes to
19.500 ....so 40k im giving - the 19.500 = 20.500 liable at gift tax rate (32%) meaning tax to revenue in this case of 6.500 (one third or so)
These calculations are rough , just trying to see basically if I gave my parents 80k . i.e. 40 k each , if I have this right this would mean a bill of
30.500 ? seems very harsh , is there a tax efficient way of doing this better (Appreciate needs an accountants eye)
All I am seeking here is pointers , no more , its quite complicated I know.