Tax implications on Receiving Shares as a Gift ?

[whiz]

Hi Guys, Would there be any tax implications on receiving shares from your parents or grandparents ? All replies appreciated.

 

[Jessiek]

Capital Acquisitions tax is the only tax you may have to pay. It depends on the market value of the shares and who you are receiving them from. There are different tax thresholds depending on who gave them to you. Currently, the threshold A which includes parents giving a gift to a child has a threshold of €496,824. If you add up the market value of all the gifts or inheritances you've received from your parents since to date and it is less than €496824 than you pay no tax. So if the shares are lets say 150,000 and you haven't received anything else from your parents than no tax is paid. If let's say 5 years ago they gave you 200000 worth of shares or something else than you still pay no tax because 200000 + 150000 is below the €496824.

But if you are receiving them from your grandparent the threshold is B and is at only €49682. Same idea applies. Get the total market value of any gifts from this group and if its less than 49682 than you pay no tax.

Hope this helps. Check out www.revenue.ie, look up CAT for more detailed information. Also, some shares are exempt from CAT, usually government securities are.

 

[Nige]

You will have to pay stamp duty at 1% of the value of the shares too.

IN addition, ther person gifting you the shares may have a capital gains tax liability (at 20%) on any deemed gain. If this is the case, you can claim a credit against your CAT for the CGT they pay, provided you then hold the shares for two years.