Gift of €200k- when to declare, when to pay tax

HopefulBuyer

HopefulBuyer

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Hi.

I didn't know where best to ask this question, here or in tax. My uncle wants to help me buy a house and I would like to know about the transfer he sends me (200k).

Do I declare it or do the bank take care if that when it lands in my account? Is the gift tax payable immediately or only at end of year tax declaration?

Thank you
 
If you have received no other gifts or inheritances from others in Group B ( Mainly aunts uncles and grandparents)

You have a lifetime exemption of €32,500

The balance is taxed at 33%

So if you get €200k from an uncle today

Your tax liability will be

€200k - €32,500 = €167,500
CAT at 33% = €55,275

And you must pay this by 31 October 2024.

Brendan
 
Thank you Brendan

I'm glad you pointed out the Oct date, as i would have assumed Dec. I appreciate it
 
Hi, OP

Few items to consider here. The bank may look for your uncle to sign a gift letter which will include a part to say he has no right in the house. They may also look at gift as a post tax amount or look for tax to be paid ahead of drawdown.
 
Do you need all of it now ? Could he give you 3k early next year as a small gift ie to purchase furniture or do the garden next spring ? Does he have a wife that could do the same ? Would save you some tax.
 
Quick question

If someone inherits house and sells it

And gives some proceeds of sale as gift to his kids

Is this gift to kids group A
Or is it considered gift splitting
 
awawaw said:
Quick question

If someone inherits house and sells it

And gives some proceeds of sale as gift to his kids

Is this gift to kids group A
Or is it considered gift splitting
Click to expand...
Any use?

CAT gift splitting rule

Consider this scenario; A parent inherits a property from elderly relative, then decides to sell it, and give proceeds to her children. I am reading on Revenue website - if dispursed within 3 years of the original inheritance, its considered a gift from the earlier person. What if the parent...
www.askaboutmoney.com
 
Thanks for reply,

I’m finding this a bit confusing

Would I be correct in saying that this would not be considered gift splitting so

And I could avail of group a for the proceeds of sale as a gift from parent
 
I just found the working confusing sorry

Would I be correct in saying that it would not be subject to the gift splitting rule as it came from inheritance and then parent gifted son at the group a treshold
ClubMan said:
What's confusing about the thread that I linked to?
Click to expand...
 
Wording*

I wasn’t sure if it was saying that it is or is not considered gift splitting if parent inherits and passes onto children some of the proceeds.

I think it says that this doesn’t count as gift splitting and the parent can pass proceeds after inheriting as treshold a
 
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