Gift tax timeframe: Once threshold reached, is that it forever?

S

santiago

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Just wondering about the inter-sibling gift tax allowance... If I make a large gift to my brother now (up to the threshold for the inter-sibling category), does that stay on his record forever, so any more gifts in his entire lifetime will be taxed in full? Or is the record re-set after a period of time - maybe 10 years or something?

I know there's an annual small gift exemption, but I'm talking about gifts that exceed that.
 
Re: Gift tax timeframe: Once threshold reached, is that it forever?!

The record was reset some years ago in order that only gifts/inheritances dated post-December 1991 counted for this purpose. The Minister for Finance is empowered to do so again at any time although nobody knows if, how or from when this would be applied.
 
Re: Gift tax timeframe: Once threshold reached, is that it forever?!

Thanks ubiquitous and ClubMan.
 
Re: Gift tax timeframe: Once threshold reached, is that it forever?!

ubiquitous said:
The record was reset some years ago in order that only gifts/inheritances dated post-December 1991 counted for this purpose. The Minister for Finance is empowered to do so again at any time although nobody knows if, how or from when this would be applied.
Click to expand...

As Ubiquitous said nobodys knows when/if it will be done again but it is probable and if you are due to receive a large inheritance/gift it would be prudent, if everyone could afford it, to consider maxing out to threshold sooner rather than later

There are other ways to reduce inheritance tax but since there can be such a long time frame in place careful planning advice should be sought if the sums are likely to be large amounts

stuart@oilean.ie
 
Re: Gift tax timeframe: Once threshold reached, is that it forever?!

I presume that if the Group thresholds are increased that this opens up a gap that may be used. Example:

Threshold for siblings is currently €47,815. If you gift this amount and in 5 years time the threshold has incerased to €60,000, i presume that there is then some further gap that may be availed of.

However i suspect that the €47,815 may well be indexed up as well by CPI so that it could be deemed to be worth €54,000 or the like, so instead of having a new gap of €12,185 you might have a gap of €6,000.

I'm not really sure, I am guessing here, but i do not think that once you reach the limit you are always considered to have reached the limit for that group for ever.
 
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