Gift Tax & CGT

L

LilyAllen

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I'm trying to reduce our liability to Gift Tax. My husband's parents want to give him a large sum.

I have looked at the thresholds on Revenue. We received a site from them previously so I presume we have to include that in the parent to child threshold. Is the valuation that was used at the time watertight - or could we revalue this a today's reduced valuation?

Then he has the remainder of his threshold tax free. I will then use my 'stranger' threshold of 15k - or does my daughter in law status stand for anything:p (gift will be to me also).

Then I'm looking at the €3000 per year free from tax. If both parents give each of us €3000 - well that's 12k tax free, yeah? We then have 3 children - can each of them get 3k from each of their grandparents?

Then on to CGT - will there be any CGT implications for my parent in law?

Many thanks:)
 
CAT The children's gifts could be put away for education rather than to pay the mortgage.

CGT is a tax on the gain on chargeable assets. If they are giving you cash then there is no CGT, if they are giving you a chargeable asset then they will pay CGT on it.

There is a provision to offset CAT against CGT accruing on the same event,
 
Thanks Joe90.

If the gift is shares instead of cash? What is the most tax efficient way to go about this?

If Parents transfer shares -
Parents are liable to CGT, we are liable to CAT (albeit only if over threshold), we are liable to Stamp Duty.
Is the CGT offset against the CAT here (accruing on same event) - even if there is no actual CAT liability?
If we want to sell the shares after the transfer - is this allowable if we have availed of the CAT free threshold? Is there a waiting period?
What is our position in relation to CGT, if parents didn't pay CGT on the transfer, I presume then we will be liable on the sale?

If parents sell the shares and gift the money:
Is this a better option? I know there is no CGT on the transfer of money from parents to us. There will be no CAT if within thresholds. But I'm not sure of the situation if we want to pay the CGT on the shares for parents when they sell them - can this be classed as a gift from us to parents - or are we getting way too convoluted in our dealings!!

Any advice is welcome, thanks.
 
LilyAllen said:
I'm trying to reduce our liability to Gift Tax. My husband's parents want to give him a large sum.

I have looked at the thresholds on Revenue. We received a site from them previously so I presume we have to include that in the parent to child threshold. Is the valuation that was used at the time watertight - or could we revalue this a today's reduced valuation?

Then he has the remainder of his threshold tax free. I will then use my 'stranger' threshold of 15k - or does my daughter in law status stand for anything:p (gift will be to me also).

Then I'm looking at the €3000 per year free from tax. If both parents give each of us €3000 - well that's 12k tax free, yeah? We then have 3 children - can each of them get 3k from each of their grandparents?

Then on to CGT - will there be any CGT implications for my parent in law?

Many thanks:)
Click to expand...

Can a person receive €3k from each parent tax free every year or is the tax free allowance restricted to one lot of €3k?
 
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