Gift tax

E

emc2

Registered User
Messages
12
Hi guys,

Just wondering if there is a limit to the amount of money some one can give you as a gift before it gets taxed? Say you are buying a house or getting married and you're parents etc wish to give you a lump sum is this taxable?

thanks
 
Thanks for that, I had a look on revenue.ie but just couldn't find that bit.
 
Does this mean I can give a property worth about 400k to my 15 year old child and she can immediately sell it and there's no tax to pay - as opposed to me selling it and paying capital gains tax ?
 
No there are specific anti-avoidance measures to deal with this type of scenario...if you gift the property to your child and they dispose of it within 2 years, you will be deemed to have made that disposal and reliefs will be clawed back
 
Thanks a lot qwerty
So I can now give my property to my kid and in two years she can sell it and there's no tax. Whopee -25% CGT saved !
 
I think you should wait until your 15 year old child is a bit older before involving them in any form of tax schemes!

Plus how are you saving CGT if the property no longer belongs to you? And a 15 year old would need to be over 18 before disposing of property. And, at that stage, may have very different views about the wisdom of selling.

I'm not even sure a 15 year old can legally acquire title to a property.

mf
 
oldnick said:
Thanks a lot qwerty
So I can now give my property to my kid and in two years she can sell it and there's no tax. Whopee -25% CGT saved !
Click to expand...

No you can't. This thread is about CAT, not CGT. The threshold is for CAT- if you gift a property to a child there is no exemption automatically for CGT, so on the gift that in itself is a taxable transaction.
 
if its your privet primary resedance you pay nothing on it anyway to pass for this your living there with bills in your name for 12 months
 
boyle.mick said:
if its your privet primary resedance you pay nothing on it anyway to pass for this your living there with bills in your name for 12 months
Click to expand...

Just to clarify, you need to have lived there throughout the period of ownership. The last 12 months of ownership is deemed residence. So someone who owns a property for 10 years, lives in it for 3 and rents it out for 7 has a PPR period of 3+1 = 4 out of 10. CGT would be liable on gains at 6/10 of any gain.
 
thanks everyone.

Like many other oldish people I have a property investment. hope to sell it. But will pay obviously 25% CGT on gain, after capital expenditure and some indexation.


So, rather than pay CGT I thought i'd give the property to my child. After a few years she sells it. The money is hers and tax-free (assuming no big price rise). Or so i had hoped.

But I think from what Vanilla says above -if I give a property of 400k then there's still tax to pay on the gain I'd made between purchase to disposal, regardless whether I sell it or gift it. Makes sense really - damn, thought it was too easy !
 
Yes, you the disposer would pay CGT on the notional gain.

Otherwise, evrybody would gift property to their children tax-free.


She, the receiver, would not pay CAT as long as the value is under the limit.


But if she subsequently sold it at a higher value, she may owe CGT on her gain.
 
oldnick said:
-if I give a property of 400k then there's still tax to pay on the gain I'd made between purchase to disposal, regardless whether I sell it or gift it. Makes sense really - damn, thought it was too easy !
Click to expand...

ou have forgetton that now might be a good time to gift it as property prices have fallen. I can't remember how it works but I assume the property would be valued by an auctioneer for CGT purposes.
 
Unfortunately Nick the CGT will still have to be paid - also be wary of the Stamp Duty if she is not going to live there!
 
thanks everyone I think i'll go abroad for a few years and then sell it -save 100k CGT which pays for a lot of good living in the sun ! And I gather I can still spend loads of time here if I choose.
Please don't tell me I can't do that ....
 
You can certainly go abroad for a few years and then sell it, but I don't see how that would save CGT?

CGT is payable on real property in Ireland in the Irish state. All that you would be doing would be adding a double layer of potential tax- tax first in Ireland and then possibly abroad ( depending on double taxation agreements etc).

God loves a trier though.
 
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