Gift tax / capital gain tax

L

Laurabutlerk

Guest
I will be gifting shares to my mother at a value of 10,000 euro today. I was wondering do I have to pay stamp duty/capital gain taxes are anything else on them first.

When she receives them what capital gains does she have to pay on them
 
You will be subject to capital gains tax at 20% on the increase in value in the shares from the date you acquired them to today's market value.

Your mother will receive a taxable gift of €7,000 (the €10k less the €3k small gift exemption) but if the value of this gift does not bring her total gifts from children/siblings/aunts & uncles since December 1999 to over €49,000 there will be no gift tax payable. If gift tax is payable, she can reduce this by the amount of CGT you pay, but must keep the shares for two years.
 
My mam has never recieved a gift from us, so the only problem is with the capital gains tax...

I thought that if I gift them over that she has full ownership and therefore the capital gains would be her responisbility.
 
The capital gains are your responsibility. Effectivly by making the gift you are crystallizing (sp?) the gain. As Nige mentioned there is a CAT/CGT offset.

The transfer should also create a stamp duty liability. The rate is 1% of the consideration paid, assuming the shares are for an Irish Registered company.


Past30
 
As said, you mother is not the one making the gain, you are. ( Even though you are not getting any actual money ). If your mother retains the shares and in a few years herself disposes of them at an increase in value, then she would have CGT to pay on her gain then, subject to the rules/exemptions of the day.
 
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