CAT - Can grandparents pay for education?

S

Steven Barrett

Registered User
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If a grandparent pays for a grandchild's education, does this count against the grandchild's future CAT threshold? I can see that the reasonable education costs of a child is exempt but can't see anything about grandchildren.

Thanks


Steven
www.bluewaterfp.ie
 
To jump in with a further question on this. If the grandparents can pay without CAT implications, can they claim relief on it?

There is always the €3,000 p/a per grandparent gift allowance to avoid some of the threshold being reduced.
 
Blackrock1 said:
presume its also in the plan but is there 12k there to the parents? who could use the monies to cover some costs as well.
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Yeah, we have that covered too.

I know in other countries it can be done no problem and no doubt it is done here too without it being reported. Just wondering what the revenue's view is on it.
 
Technically, it’s taxable, but I’m not aware of Revenue ever taking an interest in Granny & Grandad cutting a cheque for the school fees.

Private school fees are usually around the €6k mark anyway, so two Small Gift Exemptions tends to do the trick anyway.
 
Gordon Gekko said:
Private school fees are usually around the €6k mark anyway, so two Small Gift Exemptions tends to do the trick anyway.
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Piqued my interest...so did some googling...

Boarding schools selection:
Clongowes €20,290
Roscrea Cistercian €15,600
Columba's College €23,952
BlackRock College €17,250 (in 2011)

Day selection:
Wesley College €6,550
Terenure College €5,200
Sutton Park €7,900
Alexandra College €7,241
Nord Anglia up to €24,000 (!)
 
Hi all, Sorry for dragging up an old thread but just wondering if anyone has any updated thinking on this. My understanding is that the cost of education should reduce the group B threshold but Revenue are unlikely to chase it. Also the bulk of the gift will be offset by the small gift exemption.
 
I still agree with that analysis.

Section 82 exempts the payment of fees by parents. No such exemption exists for grandparents.

Technically it eats into Small Gift Exemptions and then thresholds, but I’d say very few people disclose it and I doubt Revenue really care.
 
I would be very surprised if fee-paying schools systematically disclose to Revenue who pays school fees.

I doubt they even keep track themselves of who the payee is once the payment is made.
 
Sorry, to drag up an old thread. But does anyone know, if Grandparents pay 3k each towards School fees, is that considered a small gift to the parents or to the child?
 
I looked into this a few years ago. In this case the grandparents paid school fees for their grandchild. In that case we took the first 6k as a small gift to the child and reduce the threshold by the balance. My thinking would be if they only paid 6k that was earmarked to cover some the schools fees I would see it as a gift to the child. If they give the 6k to each child mother and father towards the cost I am not sure Revenue would see it in the same light
 
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