Tax Implication of donation from parents

C

Cricket

Guest
Renting but have found a property to purchase. Father in law decided that he wants to give us money from a lump sum received at retirement, and thus help us reduce our mortgage. What are the tax implications of this or at what € value does a tax implication kick in?
 

You are a acquiring a gift from your father in law. Assuming you have not received a gift from anyone else in the relevant threshold your wife will be able to receive about €521,000 (Group A Threshold) + €3,000 (small gift exemption) from her father, tax free. You will be able to receive about €26,000 (Group C Threshold) + €3,000 (small gift exemption) from your father-in-law, tax free.

By taking a gift and using some or all of your threshold you are affecting how much your wife can receive tax from her father in future years, either by means of gift or inheritance. The thresholds are index linked.

You do not need to make a return (IT38) to Revenue unless the amount you are receiving is in excess of 80% of the relevant threshold.
 
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