Would gift tax arise on a mortgage write-down?

[callybags]

http://www.askaboutmoney.com/showthread.php?t=178662

This thread, although closed got me thinking.

If someone got a write-down of €50,000 either through inability to pay or a negotiated settlement for early payoff or a surrender of a tracker, would gift tax arise?

It would essentially be a gift from an unrelated party with a low tax free element (not sure of the figure).

 

[Bronte]

Your post is logical but revenue have put out a statement on this saying they will not class debt write downs as 'gift's. It was on here on AAM in the last month.

 

[callybags]

Would you have a link to the thread?

Can Revenue just decide themselves that they won't pursue taxes?

I would have thought there would have to be specific legislation enacted.

 

[Bronte]

Would you have a link to the thread?

Can Revenue just decide themselves that they won't pursue taxes?

I would have thought there would have to be specific legislation enacted.

You're asking the wrong person for links, not good on that .

Revenue can be a law onto themselves sometimes They are being pragmatic, it's government policy to get the country moving again and taxing people in debt for debt writedowns would be contrary to that, and the whole system would probably collapse.

 

[Luternau]

I may be way off here;
When debt writedowns etc were first mentioned, was it not stated that the insolvency legislation left the door open for Revenue to pursue any benefactor for Capital Acquisitions Tax? (Don't think it was gift tax)
It was stated that this was not an intended consequence of the legislation/write-off (self defeating) and an amendment would be made to address this?
Could be recalling this incorrectly though.