Taxation of gift received from parent

[settlement]

Hi all,

I'm very confused about taxation of a financial gift from a parent despite reading the revenue guidance.

I understand 3k per year is not taxable and doesn't contribute to the lifetime maximum tax free threshold.

But what about a 10k gift from a parent? Is that other 7k taxable? Provided the threshold has not already been exceeded. I mean a gift, not an inheritance

 

[Gordon Gekko]

Then it would eat into the threshold.

But each person can give and receive €3k.

So parents can give €6k, and a couple could receive €12k in such circumstances.

 

[settlement]

Then it would eat into the threshold.

But each person can give and receive €3k.

So parents can give €6k, and a couple could receive €12k in such circumstances.

Yes but I mean if I receive a gift of 20k, will I be taxed on 17k now? Or will it just go into the threshold?

 

[Gordon Gekko]

If you receive a gift of €20k from one person and you haven’t received anything else from then during 2021, the first €3k will be exempt and the rest will eat into the relevant threshold (if it’s still available).

 

[settlement]

If you receive a gift of €20k from one person and you haven’t received anything else from then during 2021, the first €3k will be exempt and the rest will eat into the relevant threshold (if it’s still available).

Thank you. So I can get 330k or thereabouts from parents and, a total of 32.5k from 2nd degree relatives like aunts/uncles etc before I must start paying tax? And this threshold is cumulative, ie not specific to each disponer, but specific to the recipient? And whether its for a house deposit or not is irrelevant?

 

[Gordon Gekko]

Correct

 

[settlement]

Correct

thanks