Gifting daughter money to buy a house

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MovingNorth

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Are there tax implications to gifting our daughter money to buy a house?

We have money from an inheritance and we would like to give this money to our daughter to help her buy a house. The amount is less than €300,000. We live in Dublin and she would be buying in Northern Ireland.

Are there tax implications to giving her this money? It would essentially be an early inheritance.
 
The gift is above the threshold for declaring a gift as it exceeds 80% of the current threshold for Category A, Parents to child of € 335,000

She will have to declare the gift using form IT38

The Capital Acquisition Tax is based on the cumulative total of all gifts received since Dec 1991.
If has received any prior gifts and the total exceeds € 335,000 than she will be liable for tax at 33% on the amount above this threshold

This the tax position for Ireland
I do not know if there are any tax implications from a UK point of view
 
Thank you very much.

This means any transfer above €268,000 would need to be declared using form IT38.

If we give her €265,000, does this mean that it would be more straightforward and she would not have to fill in the form.
 
MovingNorth said:
Thank you very much.

This means any transfer above €268,000 would need to be declared using form IT38.
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Yes.

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www.revenue.ie www.revenue.ie
If the total taxable value of your gifts and inheritances exceeds 80% of the relevant group threshold, you must file an IT38 return.
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€335k x 80% = €268k.
MovingNorth said:
If we give her €265,000, does this mean that it would be more straightforward and she would not have to fill in the form.
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Yes, you can give her up to €268k without triggering the mandatory filing but it doesn't make any difference tax wise as the amount given now still counts towards using up some of her lifetime CAT group A tax free allowance and may just need to be reported at a later date.

You can give her €300k now as originally intended and she just files the IT38 return. What's the problem with that?
 
Folks, are you sure this is correct?

I’m guessing the daughter is tax-resident in NI and, as far as I know, there is no gift tax in the UK.

I think it makes sense to get professional advice with regard to any material cross-border transaction.
 
Sorry, I overlooked the cross jurisdictional issue altogether and assumed that all parties and transactions were within the Republic of Ireland.
 
Once the person giving the gift resides in Ireland, Irish CAT comes into play

Same for inheritence
 
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