Tax on transfer of money from parent to child

[Mamamia22]

I see an article on todays indo re reductions of thresholds for CAT. More disincentive to work in my view. If I choose to give my child 20k now is that tax exempt ? Does it count towards their lifetime threshold ?

 

[Protocol]

No CAT until 335k.

The 335k is a lifetime limit for the recipient.

I think that means that past gifts/inheritances in category A are added up over time, and CAT kicks in once 335k is reached.

 

[fidelcastro]

I see an article on todays indo re reductions of thresholds for CAT. More disincentive to work in my view. If I choose to give my child 20k now is that tax exempt ? Does it count towards their lifetime threshold ?

You can gift 3k/yr without impacting on the 335k exemption.

 

[fidelcastro]

You can gift 3k/yr without impacting on the 335k exemption.

Your spouse can do the same.

 

[ClubMan]

There are several existing threads about gifts/bequests from parents to children and the relevant gift/Capital Acquisitions Tax issues. You should be able to find them by searching.

 

[Horatio]

You can gift 3k/yr without impacting on the 335k exemption.

Yes, a very important distinction.