Gift Tax on transfer to brother

I searched the forum but could not find an answer to this question. I have rounded off the figures to keep it simple. This is just something I was wondering about.

If I wanted to gift my brother 100K in cash. It would be subject to tax on about 60K of the total, as the transfer is brother to brother with a limit of about 40k tax-free.

Could I instead gift the money to my parent, and then get them to gift the money to my brother. Avoiding the tax completely as both the transactions in this case would be between parent and child and subject to a much higher tax threshold in both cases (400K ish).

The figures aren't particularly important, just the overall method. I was curious if there was some other issue preventing this approach? For example would a certain amount of time have to ellapse between both transactions?

That just the thing. to make it look legit you would prob have to wait a while before your parents gift it to him.

Not a bad idea. i'm sure though the revenue foreseen this avoidance area and have some kind of way to catch you out. but good luck with it

Legin said:

Could I instead gift the money to my parent, and then get them to gift the money to my brother. Avoiding the tax completely as both the transactions in this case would be between parent and child and subject to a much higher tax threshold in both cases (400K ish).

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Not true.

The threshold on transfer from parent to child is €478,155

The threshold on transfer from child to parent is €47,815

All from [broken link removed].

So your parents would be liable for the same amount of tax your brother would have been liable for-no loophole there.

Thanks CCOVICH, that clarifies it perfectly.

I am curious about the note on the page:

*In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold

In what circumstances?

The the 'child' is a minor child of a deceased child AFAIK, i.e. a grandchild whose parents are dead.

Hi Would anyone know if my sister can give me a house as a gift without paying any tax. The house is valued at 75,000

Sue said:

Hi Would anyone know if my sister can give me a house as a gift without paying any tax. The house is valued at 75,000

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You will not be liable for CAT, but your sister will be. See the Revenue link I provided above for details.

Thanks for the quick response. I have been reading the revenue site. So if the house was valued at €47,815 (the exemption limit for sisters) would there be no tax implication on either side?

Sue said:

Thanks for the quick response. I have been reading the revenue site. So if the house was valued at €47,815 (the exemption limit for sisters) would there be no tax implication on either side?

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Couple of things.

Are you gifting a house or a ruin?

How did you come up with the original valuation of €75,000?

The Revenue will not accept 'your' valuation, i.e. you cannot decide the house is worth €47,815 if it is in fact worth €150,000. They will consider the transfer to have taken place at market value.

With regard to other tax implications-you should really start a separate thread or search elsewhere on the site. But there may be a CGT implication for you. I doubt there are any stamp duty implications if in fact the 'house' is worth €75,000.

Bottom line-you can't undervalue a property to gain tax exemptions/reliefs. This is tax evasion.

The house was valued at 75,000, i was just wondering if it was within the exemption limit would there be no tax implication. The house is not a ruin, does this make a difference?

I was curious as to what kind of house you could buy in Ireland for €75k.

If the house was valued at €47,815 then there would be no CAT payable. But if it has been valued at €75k, the tax is payable at 20% on the balance (€75,000-€47,815).

Ty for that response. The house is leasehold that is why it is valued at 75,000.