3k Annual Gift Tax - What if I give more?

A

AndroidMan

Registered User
Messages
403
For the last few years, I have been availing of this, putting in the maximum each year.

But the kids are a bit older now and have their own bank accounts and I do transfers for things like birthdays, christmas, spending money for holidays etc. Is that pushing me over the 3k threshold?
Would be better if I gave them cash for these occasions?

Or is there a reasonable threshold over the 3k?
 
You can gift €3k to each person each year. You don't have a problem if the child's girt goes over €3k, they do.

Gifts your children receive up to the value of €3,000 from any person (wife and you is two) in a calendar year are exempt from Capital Acquisitions Tax (CAT). This means that they may take a gift from several people:

- in the same calendar year
- and
- the first €3,000 from each disponer is exempt from CAT.

Gifts of €3,000, are not taken into account in computing tax and are not included for aggregation purposes.

This small gift exemption applies only to gifts and not to inheritances.

A CAT Return is not required to claim the Small Gift Exemption for annual gifts of up to €3,000.

A CAT Return is only required when the taxable value of the gift exceeds 80% of the relevant group threshold. All prior taxable gifts and inheritances, received within the same group threshold since 05 December 1991, should be included in this calculation.

The taxable value of the gift is then reduced by the €3,000 small gift exemption.
 
Last edited:
You can gift to your spouse without limit.
So your spouse should be gifting to children as well.

[What could trigger the beast is AML returns by financial institutions where there are large amounts going into accounts. This can come about by lazy officials returning STRs without due consideration as they are indemnified essentially for negligence if they make incorrect returns. ]
 
Are the kids over 23 and out of full time education? Before that you are giving them money as they are dependant on you and you fund their lifestyle whether it is paying for college accommodation or giving them money for a TY ski trip.

Just clearly mark it in your bank transfer as a gift, otherwise the transfer of small amounts, a few hundred could easily be explained away in every day to day interactions. They paid for the family meal out and you were paying them back etc.
 
I like to drop a few hundred cash here and there for birthdays, holidays, Christmas, grand kids school fees........even though I have one who complains that he hasn't used cash in years.
 
AndroidMan said:
Not sure that should be relied on. Looks like I am potentially making the kids liable to a tax bill by having a digital trail.
Click to expand...
Are you expecting a revenue audit or such? Revenue are not going to spend taxpayers money going through accounts seeing if you gave Mary an extra 50 euro for her birthday and go back years on this digital trail unless you are running a crime empire or such where they retain the right to do so.

I agree with a previous comment. The OP is overthinking this. People are giving their kids deposits for houses and such all the time and not strictly declaring it.
 

Are you sure? Employers have to report to revenue if they provide easter eggs to their employees! Its getting pettier!
 
You must log in or register to reply here.
Menu
Log in
Register