# 3K gift tax free



## misstealeaf (5 Mar 2015)

Sorry posted this in the tax thread but i think it should actually be in here.

In 2013 my Dad gave myself and my husband 15000 to go towards the deposit on our house, my mam also gave us 10000. I know that the first 3K of any gift from one person to another is tax free so I am calculating that the taxable value of this gift would be 13K all in given that 3 from my dad to me and my husband is exempt and the same for my mam. the 25K all went into my bank account however just for ease at the time so each parent only had to make 1 transfer. is this ok? thanks


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## InfoSeeker (5 Mar 2015)

Have a look at the gift thresholds in the link below.

Assuming you have not exceeded these then no tax is due.

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

You must make a tax return if the total value of gifts and inheritances you have received in one of the groups, A, B or C, since 5 December 1991 is more than 80% of the tax-free threshold for that group.

If the total amount is <80% then simply make a note of the gift as no action is required on yor part at this point in time.


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## misstealeaf (5 Mar 2015)

Infoseeker I should have clarified. I have exceeded the threshold due to an inheritance so for he purposes of previous gifts received I was going to say that the previous taxable value was 13K as outlined above even though the full amount went into my account it was used to buy a house with my husband and the intention of my parents was that it was a gift to both of us so that's why i am deducting off 2 3K's for my husbands gift from my parents.

Would this be ok do you think?


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## Audi_Driver (5 Apr 2015)

Just when on the subject of the 3k tax free gift allowance 

Could a son or daughter receive 3k from their mother and 3k from their father in the one year tax free? 

 ie received 6,000 in one year tax free?


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## Gordon Gekko (6 Apr 2015)

misstealeaf said:


> Infoseeker I should have clarified. I have exceeded the threshold due to an inheritance so for he purposes of previous gifts received I was going to say that the previous taxable value was 13K as outlined above even though the full amount went into my account it was used to buy a house with my husband and the intention of my parents was that it was a gift to both of us so that's why i am deducting off 2 3K's for my husbands gift from my parents.
> 
> Would this be ok do you think?



An inheritance from who?

Audi Driver, yes...a person can give another person €3k per year, so yes - €6k per couple. It just needs to be clear that it's from both (so either €3k clearly from each or €6k from their joint a/c).


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## Audi_Driver (6 Apr 2015)

Gordon Gekko said:


> An inheritance from who?
> 
> Audi Driver, yes...a person can give another person €3k per year, so yes - €6k per couple. It just needs to be clear that it's from both (so either €3k clearly from each or €6k from their joint a/c).



Gordon,

Many thanks for that.


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## Audi_Driver (6 Apr 2015)

Hi Gordon,

I just have another question on the 3,000 tax free gift allowance. 

Could a brother gift a brother €3,000 in a year tax free ? 

I am aware there is a 30,000 life time limit tax free allowance.


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## Grizzly (6 Apr 2015)

This is what it says on the revenue page. This suggests to me that a person can only receive one gift of €3k tax free?


the first €3,000 of all gifts taken by a donee from one disponer in any calendar year


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## Gordon Gekko (7 Apr 2015)

Grizzly said:


> This is what it says on the revenue page. This suggests to me that a person can only receive one gift of €3k tax free?
> 
> 
> the first €3,000 of all gifts taken by a donee from one disponer in any calendar year



Nope...it says that the first €3k of gifts received by one person from one person is tax free.

I could receive 100 gifts of €3k from 100 different people and that would be fine.


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## Grizzly (7 Apr 2015)

http://www.revenue.ie/en/tax/cat/gift-inheritance.html


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## landlord (8 Apr 2015)

From Revenue.ie , Gift tax-CAT1

Are there any exemptions from Gift Tax?
Yes. The main exemptions are -
the first €3,000 of all gifts taken by a donee from ONE disponer in any calendar year.

(Donee- receives the gift and the disponer gives the gift)

So a person may receive an unlimited number of gifts tax free if they do not exceed exceed €3,000.


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## theresa1 (17 May 2015)

I am seriously considering giving my Sister €3,000 each year tax free rather than waiting until I die which hopefully will be a long time from now.

Do I have to return any paper work to the revenue or can I just start this year and give my sister €3,000 and then €3,000 in 2016,2017 etc. and stop a year and continue the next if i want?


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## Gordon Gekko (17 May 2015)

theresa1 said:


> I am seriously considering giving my Sister €3,000 each year tax free rather than waiting until I die which hopefully will be a long time from now.
> 
> Do I have to return any paper work to the revenue or can I just start this year and give my sister €3,000 and then €3,000 in 2016,2017 etc. and stop a year and continue the next if i want?



Absolutely, yes. No return required.


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## ricta (20 May 2015)

When calculating one's liftetime aggregate of Group A gifts, is the first €3000 in each calender year, included or not?
e.g.if a son was gifted €3000 in 2013, €3000 in 2014 and €225,000 in 2015, would the son's CAT Group A aggregate now be €222,000 or would it be €231,000?


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## Joe_90 (20 May 2015)

The first €3,000 of gifts for each individual per annum is exempt.  Therefore €225,000 is not affected by €3,000 from each individual.


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## Kimmagegirl (21 May 2015)

So the OP is receiving a gift from her parents but so is her husband. Can the husband receive any tax free gift, so reducing the overall tax bill?


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## Jon Snow (21 May 2015)

Kimmagegirl said:


> So the OP is receiving a gift from her parents but so is her husband. Can the husband receive any tax free gift, so reducing the overall tax bill?


Yes, that's the whole point of her question!
They received 25k, and she was asking if her figure of 13k (after deducting 3kx2 for her and 3kx2 for husband) is correct.


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## ricta (21 May 2015)

I rang Revenue today with my question above, and the answer is that the first €3k from any one disponer to one disponee, in a calander year, does not count towards the lifetime group aggregate of the disponee. So in my example, the son's lifetime Group A aggregate by the end of 2015 would be €222,000.


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## Gordon Gekko (21 May 2015)

ricta said:


> I rang Revenue today with my question above, and the answer is that the first €3k from any one disponer to one disponee, in a calander year, does not count towards the lifetime group aggregate of the disponee. So in my example, the son's lifetime Group A aggregate by the end of 2015 would be €222,000.



It'd probably be €219,000 as the gift would typically be from two parents (so €225,000 less €6,000).


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## Gordon Gekko (21 May 2015)

ricta said:


> I rang Revenue today with my question above, and the answer is that the first €3k from any one disponer to one disponee, in a calander year, does not count towards the lifetime group aggregate of the disponee. So in my example, the son's lifetime Group A aggregate by the end of 2015 would be €222,000.



It'd probably be €219,000 as the gift would typically be from two parents (so €225,000 less €6,000).


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## Orbit (22 May 2015)

Its not 222k or 219k. 
If a son receives 3K in a calendar year from his father or mother this does not use up any of his lifetime threshold of 225K.
If a son receives 3K from his mother and 3K from his father in a calendar year this still does not use up any of his 225K lifetime threshold.


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## DDanmurphy2 (11 Oct 2015)

Would I be correct in saying that a parent can gift 3k to each of there children or any other person each year and there is no limit to the number of people that parent gifts to?


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## Conan (11 Oct 2015)

Yes, you can gift €3,000 to anyone each year without affecting their CAT threshold.


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## john luc (22 Oct 2015)

I received a gift this year of 64K from a parent and now I have being contacted by a solicitor that I am to benefit  from a cousins estate. The solicitor has asked me to supply details of any past gifts as this is the only one do I tell them about it and do I report it to revenue.


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## Gordon Gekko (22 Oct 2015)

Orbit said:


> Its not 222k or 219k.
> If a son receives 3K in a calendar year from his father or mother this does not use up any of his lifetime threshold of 225K.
> If a son receives 3K from his mother and 3K from his father in a calendar year this still does not use up any of his 225K lifetime threshold.



You seem to have misunderstood the question (admittedly months ago).

The child received €3k in 2013, €3k in 2014 and €225k in 2015. The child's total aggregated Group A gifts are therefore either €222k or €219k as in 2015 the first €3k or €6k is disregarded (depending on whether the gift came from one parent or both).


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## Learner2015 (23 Oct 2015)

Gordon my understanding is the SGEs of €3k are not subject to aggregation on the Group Thresholds, in this case GT A which is €225k until 13.0.15. So the child's total aggregated group A is €225k, the 3k in 2013 and 2014 never come into it.


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## Gordon Gekko (24 Oct 2015)

Learner2015 said:


> Gordon my understanding is the SGEs of €3k are not subject to aggregation on the Group Thresholds, in this case GT A which is €225k until 13.0.15. So the child's total aggregated group A is €225k, the 3k in 2013 and 2014 never come into it.



Hello.

I think that people may be confusing the threshold and aggregated prior benefits. In the poster's example, someone received €3k in 2013 and €3k in 2014. That person then received €225k in 2015. But he/she can receive a disregarded €3k in 2015 too, so his/her aggregated Group A benefit is €222k, i.e. he/she still has €3k of headroom. And if the €225k came from the Mum and the Dad, the aggregated Group A benefit is €219k, because €6k of 2015's €225k gift would be disregarded.


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## noproblem (24 Oct 2015)

I'm puzzled Gordon Greko. I was of the belief that a son/daughter can get €3k every year tax free from mum or dad. In other words, €6k each year and no tax, nor does it interfere with any inheritance they might get in the future. What you say above looks very complicated for something I think is and should be very simple with no aggregates, group a's or b's or whatever.


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## Learner2015 (24 Oct 2015)

Thanks Gordon what you say makes sense to me now


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## DDanmurphy2 (28 Oct 2015)

Apart from the 3K allowance per year, a parent can gift up to 225K in cash to each of their children free of all taxes? Is this correct?


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## Gordon Gekko (28 Oct 2015)

It's €280k since the Budget, but yes.


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## Logo (31 Oct 2015)

Just checking on Revenue inheritance rules, an unmarried individual without children can only leave 30,150 to Brother/Sister/Niece/Nephew/Grandchildren (Group B on Revenue website rules). If an individual has one sister and one niece to inherit, can both be gifted €3K per year (lodged into a trust-fund account) to accumulate tax-free?


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## Gordon Gekko (31 Oct 2015)

Yes


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## Accounted (9 Dec 2015)

May I ask if a parent gifts a child 3k on December 31 2015 can the parent give the same child another 3k on the 1st January16 ?thanks


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## Gordon Gekko (10 Dec 2015)

Accounted said:


> May I ask if a parent gifts a child 3k on December 31 2015 can the parent give the same child another 3k on the 1st January16 ?thanks



Yes


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