Gift

Hi

Is there any tax liability for parents gifting a child circa € 350K ?

Thanks in advance.

According to there is no liabilty as far as I can see.

The CAT (ie Gift Tax) is based on cumulative gifts/inheritences since 5 Dec 1991 - so if as long as the 350K doesn't breach the cumulative threshold limit of 456K from parent to child, there is no CAT liability. This will, of course, affect future gifts/inheritences as part of the threshold has already been used. At some time in the future, the start date of 5 DSec 1991 may be moved and thus this gift may no longer count towrds the cumulative amount but no one can say.

If the parents dispose of an asset (ie shares or property) by gifting it to their child, they may have a liability for CGT (Capital Gains Tax)

Regards
Joe

jpd said:

If the parents dispose of an asset (ie shares or property) by gifting it to their child, they may have a liability for CGT (Capital Gains Tax)

Click to expand...

Just on that topic ... what are the CGT implications (for the parents on transfer and the child in disposal) of them gifting the asset (with such an intra family transfer subject to stamp duty at half the normal rate applicable)?

Where the parents give a gift to their children they are deemed to have "disposed" of it at market value. This is a chargeable event for CGT purposes. The actual CGT is calculated by difference between the market value at disposal and the original cost of the asset with all the usual charges allowed ie indexation, selling, buying expenses, annual allowance, etc

Note that if CAT and CGT liabilities arise from the same event ie a gift, the CGT can be used as a credit against the CAT liability

The child is deemed to have received the asset at market value and this will be used to calculate his CGT liability if/when he (the child) disposes of it in the future.

Note that if instead of gifting the asset to the child whilst alive, the asset is passed to the child on death (either by will or through intestacy) there is no liability to CGT.

CGT is paid by to the person/estate disposing of the asset
CAT is paid by the receiver of the gift/inheritence

Thanks for that explanation jpd.

Thanks for the replies

The though is that my parents will gift me the money from inheritance which I will use to buy a property to live in and pay them a monthly amount rather than a bank.

Any other implications apart from parents paying income tax ?

There could be - see these Revenue press releases:

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Thanks Clubman

Would not be my first house so should be ok on that one.

Am happy to hear there doesnt seem to be anything I havnt though of but will obviously run it by the solicitor first.

Cheers