Grandparent to Grandchild. Gift every year.

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Laramie

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How much can a grandparent give as a gift per annum to a grandchild that is not taxable? I read that the first €3000 is tax free but if the grandchild were to receive this €3000 every year can all these amounts eventually add up to being taxed.
 
They can receive up to €33,500 CAT tax free either as single gift or by a series of gifts and inheritances over a period of years, however this total is the aggregate sum of gifts from all the family category which includes Brothers/Sisters/Uncles/Aunts/Grandparents over the lifetime of the recipient.

In effect, a beneficiary can take €3,000 from the same disponer in different calendar years and these gifts will be exempt from CAT. A beneficiary can take gifts from several disponers in the same calendar year and the first 3,000 of each of those gifts will be exempt.

I think new rules indicate that if you recieve a gift greater than the small gift amount you now need to declare it to the revenue and they can register usage of part of the lifetime tax free allowance.

To answer your specific question I believe that if they receive €3,000 per year from the individual it would not add up to being taxed.

Info from here - http://www.revenue.ie/en/tax/cat/leaflets/cat1.html and here http://www.revenue.ie/en/tax/cat/thresholds.html and here http://www.revenue.ie/en/tax/cat/leaflets/it39.html#information
 
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To answer your specific question I believe that if they receive €3,000 per year from the individual it would not add up to being taxed.

So if a grandchild receives 3k every year as a gift, this will eventually hit the CAT limit or will always be exempt? I read the response as being always exempt but perhaps I'm wrong.
 
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Also, how does it work if you transfer 3k to 2 grandchildren who might be under 10.

Is this gift ring-fenced in terms of what the child parent can do with it? Or can the parent choose to spend as they see fit i.e. toys, decorating, holiday etc?
 
Lollipop..You can gift 3,000 each year to each grandchild, child, sibling... ( or anyone else, for that matter) and it does NOT accumulate in the tax free limit. Age of child does not matter. It is a gift to the child, the parent cannot choose how the child spends it.
 
My parents in law give €3000 each year to each grandchild once they are 13 or over. The money is given to the child. In our case ours are allowed to keep/spend €100 and the rest goes into their savings.
 
Thanks Mizen Head,

Understand you wouldn't want parents raiding children's money if it has been gifted to them but lets say for argument that the family were looking for a home to purchase and this would benefit all the family.

It's probably a grey area but I imagine it be possible for parent to use the children's gift money to facilitate the purchase? As opposed to daddy flogging it on a new BMW or something that doesn't directly benefit the children??
 
Does anyone know if gifts of £3000 per year made in the uk (the tax exempt small gifts limit) would be treated in the same way if someone moved to Ireland and eventually came under Irish tax laws? ie not be aggregated for CAT
 
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