Gifting 3k per annum

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Good afternoon ,
May I ask if I gift 3k per annum to a friend`s son, would that be taken into account as part of any future inheritance ? ie Would that be recknonable as part of their inheritance threshold ?
 
Can I double check...if I gift him 3k for the next number of years and the total gifted exceeds the Group C 20k limit , will he be liable for CAT ?
Thank you.
 
On this subject, how much can children or indeed anyone receive from both parents each year under the small gift’s exemption.
I understood a husband and wife could each give 3k (€6k in total yearly) to their children and grandchildren for example but was advised recently that an individual can only accept 3k each year. Which is correct?
 
Broadcaster said:
was advised recently that an individual can only accept 3k each year. Which is correct?
Click to expand...

You are correct and whoever advised you is incorrect.

Small Gift Exemption​


Gifts you receive up to the value of €3,000 from any person in a calendar year are exempt from Capital Acquisitions Tax (CAT). This means that you may take a gift from several people:

  • in the same calendar year
  • and
  • the first €3,000 from each disponer is exempt from CAT.
Gifts of €3,000, as outlined above, are not taken into account in computing tax and are not included for aggregation purposes.

This small gift exemption applies only to gifts and not to inheritances.
 
Can a couple gift 12K from a joint account to another couple’s joint account under the small gift exemption ?

Myself and spouse gifting to daughter and her spouse.

From experience, is this acceptable to Revenue ?
 
I believe that is ok, it would be each of you and you wife gifting 3k€ to your daughter and spouse, which is covered in the 3k€ annual gift allowance.
 
Deauville said:
Can a couple gift 12K from a joint account to another couple’s joint account under the small gift exemption ?

Myself and spouse gifting to daughter and her spouse.

From experience, is this acceptable to Revenue ?
Click to expand...

Hi Deauville,

I'm probably being overly cautious here but I personally would prefer to gift the €3,000 x 4 separately to the bank account stating '€3,000 gifted to X from Y under 2025 Small Gift Exemption'. Keep maybe a Word file with a copy/note of each transaction, for each year, in case anything were to arise in the future with Revenue, which it probably won't. I know its not the same situation but the article from Indo in this previous thread just leads me to believe its best to have the backup info available.
 
Revenue aren't remotely interested in going after small gifts and there is absolutely no need to specifically document these on a list or anywhere else.
 
Thanks for the feedback folks.

Being a belt and braces guy I’ll make it 2x3k from me and 2x3k from my better half as per Sue Ellen’s preference.

In the past I’ve noted the gift on the sepa transfer, from/to.

Also in the past (on one occasion) we’ve gifted 12k and loaned 12k and in the new tax year sent a letter to them writing off the loan. That write-off being a gift in that new tax year.
The potential liability for tax on the potential loan interest would have been tiny for the couple of months it involved.
I hope that strategy wasn’t a mortal sin.
 
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