Savings account tax question
- Thread starter awawaw
- Start date
No. CGT is irrelevant here as there is no capital asset.
Most people are liable for DIRT on deposit interest.
www.citizensinformation.ie
In many or most cases this is deducted at source by the bank.
If you gift the money to someone else there are no tax liabilities for you. Whether or not the recipient will have a CAT/Gift Tax liability depends on the amount involved, their relationship to you, what previous gifts they may have received, etc.
www.revenue.ie
If it's under €3K and you don't gift them more than that in a tax year then it's exempt.
Most people are liable for DIRT on deposit interest.
Deposit Interest Retention Tax (DIRT)
If you earn interest on savings, you pay a tax on the interest called Deposit Interest Retention Tax (DIRT). Information about DIRT, who pays it and exemptions and reliefs.
If you gift the money to someone else there are no tax liabilities for you. Whether or not the recipient will have a CAT/Gift Tax liability depends on the amount involved, their relationship to you, what previous gifts they may have received, etc.
Gift and Inheritance Tax (Capital Acquisitions Tax – CAT)
This page gives a general overview on CAT implications on gifts and inheritence.
www.revenue.ie