Small Gift Exemption - Cap Gains tax due for the gift giver?

[jammy27]

1. If a father (tax resident in Rep of Ireland ) wants to gift < €3000 worth of publicly traded shares to some of his children, is the gifting by the father considered a disposal, and therefore is the €3000 (per gift to each child) subject to Capital Gains tax (CGT) on the gains?

Father is already using his annual exemption for CGT (€1270) to deflate the Capital Gains built up.

Please include a source if possible.

2. Separately, but a lower priority question, if the children are UK resident, do they have to pay any tax on the gift receipt?

I cant find any sources which would suggest that any Irish resident children would have to pay any gift tax on the shares they received.

3. What about stamp duty on receipt of the shares?

Thanks

 

[john luc]

Cannot put up a source but as he is still living then CGT would first apply to any gains he has made on his shares before he does anything with the proceeds.

 

[jammy27]

Thanks for your reply. Sorry if I wasnt clear - a sale of the shares is not planned - they are being gifted without being sold. So is it still a CGT crystallisation event?

 

[RedOnion]

1. If a father (tax resident in Rep of Ireland ) wants to gift < €3000 worth of publicly traded shares to some of his children, is the gifting by the father considered a disposal, and therefore is the €3000 (per gift to each child) subject to Capital Gains tax (CGT) on the gains?

Yes, gifting an asset is the same as selling it from CGT perspective of the person making guft (except transfer to spouse).

2. Separately, but a lower priority question, if the children are UK resident, do they have to pay any tax on the gift receipt?

I cant find any sources which would suggest that any Irish resident children would have to pay any gift tax on the shares they received.

The Eur3k limit is an Irish rule. Irish resident children would treat as exempt.

I do not know much about UK, but rules are different. Only 250 is exempt. however, there is no gift tax, only inheritance tax. If the person making the gift dies within 7 years, the gift forms part of the estate.

3. What about stamp duty on receipt of the shares?

Only transfers to spouse are exempt.

All round, it's probably easier to sell the shares and gift cash unless a larger transfer happens, and the following relief is used:

https://www.revenue.ie/en/gains-gif...nst-cat/credit-for-capital-gains-tax-cgt.aspx