Tax issues? Repay Loan

D

deco2017

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I am not sure if there is an issue here ..
briefly , my parents very kindly , loaned me over 35 k to get me started on my first
house ..a long number of years ago. The deal was when I was set up reasonably well I
would return it. So ,I did , I gave my mum the 35 k (I had some saving/part credit union loan)
and she put into account , about 18 months ago...

That was that.

Now in an incredibly decent gesture ,mum has come back to me and said she wants
to give that money back to me as a birthday present (significant birthday) ..its fab ..but

was mentioning it to a pal of mine the other day and he made a funny comment ..along the
lines of the tax man will love you....Didn't think anything of it at the time ...

I certainly wouldn't want my mother caught up in any tax ...issues ....or indeed myself !!

Would there be any form of a tax issue in relation to this matter? It never even crossed my mind
until that off cuff remark...
 
No, there is no tax issue.

The notional interest on the loan from your parents was theoretically subject to Gift Tax (Capital Acquisitions Tax) but as it's well below the €3,000 a year threshold, it can be ignored.

The repayment of the loan is not subject to tax.

Your mother and father can give you gifts and inheritances up to €310,000 cumulatively, before they become subject to Gift Tax.

So the €35k uses up only a small part of that threshold.

Brendan
 
Hi Brendan , Thanks so much for your very quick reply. This really has no reference anyway , but I take it then should my parents decide
in a will to leave me something in many years to come , This 35K will have to be declared? in that I have availed of a specific portion of the 310.000 threshold?
Just curious its something I never really even thought of ..Thanks Again.
Deco
 
€29k of your threshold will have been used up. Under the "prior benefits" section of the inheritance tax return, you'll stick down €29k. The first €6k from your parents is disregarded (I'm assuming that the monies are a gift from both).
 
Yep well it was my mam gave it to me and I repayed her....tho a gift from both ..
 
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