Gift tax question

C

Chembelle

Registered User
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Hi, I've a bit of a complicated situation so any advice would be appreciated.
My uncle (my mothers brother) died in 2004. In his will he divided everything between his 3 brothers and his sister (my mum). However, it was stated in his will that if any of his brothers or sisters died before him (which is the case - my mum died 19 years ago), then her share was to be divided equally between her children (my 3 brothers and I). The amount we each recieved was approximately 49,000 euro. Therefore i was taxed for the amount in excess of the limit of approx 44,000. (worked out about 130 euro).
That's the simple bit, now i'm in the process of buying a house and my brother has offered to help me out and give me a gift of approximately 40,000 euro. Where do i stand in relation to gift tax? Will i have to pay tax on the gift amount and do i need to declare it? I had a look at the revenue website but i'm not sure if my brother and my uncle are in the same group. Considering one was inheritance and this is a gift. is there any difference?
I'm very confused so any advice would help greatly.
 
Gifts/Inheritances from aunts and uncles and siblings are in the same group threshold (Group B).

The 2007 Group Threshold is €49,682. As you have already received €44k from a Group B relative, this leaves €5,682 you can receive tax free. In addition, the first €3,000 of a gift from anyone is disregarded every year.

This leaves about €32k of the gift from your brother subject to tax at 20%. You will have to pay the tax and submit the return within four months of the gift.
 
Thanks for the fast response. Guess that's my dream house out the window so! I was relying on the full 40K for house deposit! Thanks again for all the information, i really appreciate it.
 
Hello

Could you not take the 40,000 now as a long term loan from your brother
with no tax liability.

Maybe later when you have your financial house in order you could discuss with your brother about converting it to a gift.
 
Would agree with Aphrodite. Take the money as a loan now from your brother. At some stage down the line Revenue may say gifts/inheritances prior to say Jan 05 are not to be agregated for the purpose of calculating the threshold - as such - you could then take the gift of 40k from your brother.

no need to do anything about it. Though would be carfeul - if the bank ask how you are financing the 40k say it is a gift from your brother - as they may not loan the full amont on the basis of a loan from your brother. they will not want to see paperwork etc only the deposit of 40k on your account.
 
I've a quick question of a similar fashion to the above.

Myself and a brother will soon be gifting my other brother around 50,000 euro between us.

I happen to know that in my uncles will, he is being left the house. Would that mean that it would make sense for us to give the money to him as a long term loan as described above?

By the sounds of it, as uncles and brothers are both group B, this would mean that he would have to pay inheritence tax on the entire value of the house if we treat the 50,000 as a gift. Is this correct?

If so, are there any forms that we need to fill in for the revenue to say that we provided him with a long term loan, would we need to have some sort of a contract or could we just lodge the money into his account?
 
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