I received a substatial cash gift from a parent in early 2003. There is no taxable as the amount is well below the threshold. Do I need to do anything in terms of declaring this or does the onus for this lie with my parent?
This is a comprehensive step-by-step guide to completing the Gift/Inheritance Tax Return ( Form IT38) in respect of gifts or inheritances taken on or after 5 December 2001. It also explains key concepts along the way and gives a number of illustrative examples. In addition, a number of appendices give more detailed notes and examples on issues of particular interest, e.g. reliefs and exemptions, limited interests, credits etc.
Thanks for that - read through the revenue link and if I understand it correctly, as the amount I received does not amount to 80% of the Group A threshold (€441K), I do not have do do anything at all. Presumably my parent will have to disclose all my details (pps no etc) to the revenue?
If the gift is what most parents are doing, as in giving you dosh to buy a house .. then on the conveyance the Revenue will know that your mortgage is adrift of the house purchase price ..by say €100k.
They may, if they have time not chasing the work they should have done 20 years ago on non-resident accounts, write to you and ask you about how you financed the difference.
On the other hand, if a Class C 'gift' .. say you get a slice of the action from some elderly neighbour that thought you were helpful when she was alive .. her gift could trigger a tax problem, as these A,B,C thresholds are 'interdependent' ...that where the matter could crystallise.
This is exactly what I'm trying to clarify - my understaing of the legislation is that since the cash gift was not equal to or exceed 80% of the Group A (parent to child) threshold (€441K), I am not required to disclose anything but my parent is. Can anyone confirm this?
If Revenue have said it, just note who told you. The tax is 'self assessment' so the obligation is ultimately with you but you wont pay any tax on that gift.
The matter of the lower thresholds for gifts means that the threholds are not separate i.e. the gift you got probably means that if a neigghbour gives you a relatively small gift that it is taxable.