Gift Tax Query

G

gallogly

Registered User
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I would like to gift my two siblings a sum of money and was wondering about Gift Tax. I have taken a look at it and am getting conflicting advice.

My undertstanding that there are three tax-free thresholds
Group A - Parent to child
Group B - sibling to sibling, nieces nephews ..
Group C - non blood related

The situation is that one of my brothers has received a site for a house from our parents. My brother believes that because he has claimed exemption in Group A he does not qualify for the Group B exemption threshold as well and will have to pay tax on the gift;

I called the revenue and a very nice woman explained that the groups were not mutually exclusive and that my brother could claim the exemption in both groups.

My brother believes the woman in the revenue is wrong and is going to speak to his accountant about it.

Just wondering if anyone out there had any definitive information on this?
 
All gifts and inheritances taken by a donee on or after 2 December, 1988 which come within same group threshold are aggregated to determine the amount of tax payable on the current gift.
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Any gifts recieved outside of the group in question (e.g. previous gifts from a parent) are not taken into consideration if a gift is recieved from someone from a different group threshold (e.g. a sibling).

Do take some time to go through the details on Gift Tax, other exemptions/rules etc. might also be relevant to the situation (e.g. €1250 per year Gift Tax exemption, notification when 80% of threshold is reached etc.).
 
The groups used not be mutually exclusive. This was changed in the Dec. 2001 budget, I think.

Now they are all mutually exclusive
 
Satanta said:
Do take some time to go through the details on Gift Tax, other exemptions/rules etc. might also be relevant to the situation (e.g. €1250 per year Gift Tax exemption, notification when 80% of threshold is reached etc.).
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The annual exemption is now €3,000.
 
Last edited:
lightup said:
Small Gift exemption is now €3,000 per disponer, per anum.
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Apologies... I took the figure directly from the CAT1 pdf (wrongly assumed it would have been kept up to date), but seeing the €3000 figure it does ring a bell.... possibly from previous posts on AAM or from the Revenue site.
 
Satanta said:
Apologies... I took the figure directly from the CAT1 pdf (wrongly assumed it would have been kept up to date), but seeing the €3000 figure it does ring a bell.... possibly from previous posts on AAM or from the Revenue site.
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Wouldn't be the first time AAM'ers were ahead of Revenue :D
 
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