Tax on inheritance of €2000

[Jano]

My friend inherited €2000 from a distant relative in 2007 but payment is only about to be received now. Does she have to declare this for tax and if so is any tax free?

 

[jpd]

No, you are allowed to receive up to € 3,000 without inheritence tax

 

[Joe_90]

Correct on the basis that they had no other gifts during 2007.

 

[jpd]

... the first €3,000 taken as a gift by a beneficiary from a disponer in any one year is exempt from tax...

from revenue website. Doesn't mention any limitation on the number of disponers

 

[twofor1]

My reading of the link below is a distant relative or anyone for that matter who is not A or B would fall into category C and can currently receive up to €20,740 without any tax liability. In 2007 the threshold was even higher.

http://www.revenue.ie/en/tax/cat/thresholds.html

 

[Nige]

the 3,000 euro exemption applies only to gifts (and is called the small gift exemption), it doesn't apply to inheritances. However, as twofor1 says, if her total gifts & inheritances from category C individuals, does not exceed the threshold, no tax will apply.

 

[Jano]

Thanks for the replies, she didn't receive any other gifts/inheritances in 2007 or ever so she is delighted with the news it is tax free.

 

[4th estate]

Thanks for the replies, she didn't receive any other gifts/inheritances in 2007 or ever so she is delighted with the news it is tax free.

Eh... she would have had to have taken NO gifts or inheritances since 5 December 1991 from Group C to be exempt. Not just 2007.

But maybe she didn't. Hold that champagne for a minute...!!

http://www.revenue.ie/en/tax/cat/aggregation-rules.html